Bitcoins recordbreaking winning streak comes to an end with a muchneeded correction
Bitcoin (BTC) abruptly exited a four-month price channel, plummeting 14.74% over three days to $53,540 by July 5. Over the past month, BTC shed more than 25% of its market value, ending its record-breaking “longest winning streak.”
Capriole Investments’ crypto expert Charles Edwards disclosed this milestone on X, underscoring Bitcoin’s unprecedented 427-day stretch without a 25% downturn. This marks the first instance in history that Bitcoin has gone so long without such a correction.
Edwards characterized it as an “extraordinary run” but also acknowledged it as a “much-needed correction” for the leading cryptocurrency.
Previously, Bitcoin endured a 364-day (one-year) period in 2012 without retracing over 25%. Interestingly, following that streak and subsequent correction, Bitcoin embarked on a more aggressive bull run, achieving historic highs.
The recent crash led to substantial liquidations in the cryptocurrency market, totaling over $662 million from July 4 to 5, with 85% stemming from long positions, Bitcoin accounting for 35% of these.
The downturn began on July 3, with the TradingView Crypto Total Market Cap Index (TOTAL) dropping from $2.25 trillion to $1.90 trillion, fueled by panic selling among traders, resulting in a staggering $311 billion loss in market capitalization in just about 60 hours.
Bitcoin’s price declined sharply from $72,000 28 days ago to a low of $53,542 on Friday, marking a 25.67% decrease after failing to breach resistance and breaking below the $60,000 support within its four-month range.
As of the latest update, BTC is trading at $55,270 and appears poised for further price range tests.
In parallel developments, macroeconomic data from the United States has indicated a weakening labor market, with non-farm payrolls showing an addition of 206,000 jobs this month, 12,000 fewer than in June. Additionally, the unemployment rate surpassed expectations at 4.1%, raising concerns about a potential recession in the U.S. This scenario could prompt the Federal Reserve to reconsider its aggressive interest rate policies.
Amid the turmoil, Bitcoin might find support from these economic indicators, potentially restoring investor confidence amid widespread sell-offs triggered by issues like those at Mt. Gox and Germany.
Traders anticipate heightened volatility in the crypto market in the days ahead, urging caution particularly regarding leveraged positions.
**Disclaimer:** This content should not be construed as investment advice. Investing carries risks, and your capital is at risk when investing.
