Bitcoin’s Wild Ride: Is It Finally Settling Down or Just Taking a Breather? 🤔

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Well now, gather ’round, folks! It seems our dear friend Bitcoin (BTC) is taking a little breather after a raucous few weeks of price corrections that would make even the most stoic of traders clutch their pearls. According to the wise folks at CryptoQuant, the BTC-USDT futures leverage ratio has halved since its dizzying heights in early 2025. Ain’t that a sight? 📉

This here de-leveraging is like a spring cleaning for the market, sweeping out the traders who couldn’t hold their horses during the recent liquidations. What we have now is a market that’s not too hot, not too cold, but just right for a potential price recovery. Goldilocks would be proud! 🐻

Now, let’s talk numbers. Bitcoin’s open interest took a nosedive of 28% from a whopping $71.8 billion on December 18 to a mere $51.8 billion by April 8. That’s a drop that would make a cat on a hot tin roof look calm! While this might stir up some short-term shenanigans, it also sets the stage for BTC to find its footing in these uncertain times. 🐱‍👤

Analyst Says $70K Bitcoin is the Worst-Case Scenario—Hold onto Your Hats!

In a recent post on X, Sina, the co-founder of 21st Capital, shared his thoughts on the Bitcoin Quantile Model, declaring, “Bitcoin is getting significantly de-risked here.” Well, bless his heart! 💖

According to this sage, Bitcoin has already completed about 75-80% of its correction, tumbling from a high of $109,000 down to $74,500. Historically, prices have been known to drop by as much as 34% during such tumultuous times. Currently, Bitcoin is down 31% from its all-time high, and if it dips to $72,000-$70,000, we might just hit that 34% mark. Sina quipped,

“Absent a recession, $70K is my worst-case scenario. While the macro backdrop remains grim and further sell-off is possible, we think Bitcoin is deeply undervalued for a long-term investor.”

But don’t get too excited just yet! The ever-astute Bitcoin researcher Axel Adler Jr. predicts that BTC might just be meandering sideways in what he calls the “volatility corridor.” Sounds fancy, doesn’t it? 🌀

This corridor, as it were, identifies a price range of $75,000 to $96,000, based on the realized prices of short-term holders over various time frames. Adler Jr. warns that BTC must keep its head above the 365-day simple moving average, or we might just see a new yearly low below $74,500. And wouldn’t that be a pickle? 🥒

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2025-04-09 21:17