Bitcoin 2024 conference sparked 30% price crash — Can bulls escape this year?

1 week ago

Key points:

Bitcoin rebounds from different enactment retest, but fears implicit a Nashville conference-induced comedown are growing.
The biggest Bitcoin gathering tends to travel BTC terms weakness.
BTC terms enactment tin and volition proceed to acquisition drawdowns of 10-20%, investigation stresses.

Bitcoin (BTC) circled $110,000 astatine the May 27 Wall Street unfastened amid concerns implicit a 30% BTC terms crash.

Bitcoin “market memory” whitethorn callback 2024 crash

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD recovering aft its latest enactment retest astir $107,000.

As large-volume traders took vantage of the volatility, marketplace commentators turned to imaginable hazard factors, these coming from aggregate sources.

Uncertainty implicit US commercialized tariffs and the instrumentality of Wall Street aft the Memorial Day vacation combined with the shade of BTC terms losses from a twelvemonth ago.

In July 2024, the Bitcoin 2024 Conference successful Nashville, Tennessee formed the basis for drawback downside successful aboriginal August which took BTC/USD down 30% from $70,000 to $49,000.

Now, with the aforesaid lawsuit getting underway for 2025, immoderate wondered whether the marketplace would acquisition an unwelcome consciousness of deja-vu.

“The sustained elevation successful near-term vols suggests that traders are positioning astir header hazard up of the Bitcoin Conference successful Las Vegas, scheduled for 27 to 29 May. Focus is already gathering astir the event’s talker line-up, which includes JD Vance, Michael Saylor, Donald Trump Jr., and Eric Trump,” trading steadfast QCP Capital wrote successful its latest bulletin to Telegram transmission subscribers.

“Last July’s Nashville Bitcoin Conference offers a utile analogue. At the time, a keynote by President Trump coincided with a crisp spike successful 1-day implied vols supra 90, followed by a swift reversal and a astir 30% diminution successful BTC wrong 2 days. That occurrence continues to signifier marketplace memory.”

A 30% retracement from existent levels would enactment Bitcoin backmost astatine $77,000 — around the country successful which it set a multimonth bottom successful April.

Continuing, crypto trader, expert and entrepreneur Michaël van de Poppe reiterated that the driblet from $110,000 to the mid-$70,000 scope had already happened erstwhile before.

“Corrections bash hap and they'll proceed to happen,” helium told X followers connected May 26, arguing that a correction of up to 20% “shouldn't disappoint you.”

As Cointelegraph reported, assorted sources person suggested that the Bitcoin bull marketplace is successful its last innings earlier a protracted inclination reversal.

Liquidity “magnet” offers $106,000 target

Tackling short-term terms action, fashionable trader Daan Crypto Trades was among those utilizing speech bid publication liquidity to place imaginable targets.

“The longer terms hovers astir this terms region, the thicker the liquidity clusters supra and beneath volition become,” helium summarized connected the time alongside information from monitoring assets CoinGlass.

“There's a large liquidity clump down astatine ~$106K and rather a fewer sitting from $111K and up. Keep an oculus retired for erstwhile terms taps either of this regions arsenic those usually enactment arsenic a magnet erstwhile terms is close.”

CoinGlass itself showed the archetypal chunk of inquire liquidity being taken into the commencement of the US trading session.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

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