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Is excessive bullish optimism behind Bitcoin’s drop below $60K?

Published 10/24/2021, 07:35 PM
Updated 10/25/2021, 09:20 PM
© Reuters.

© Reuters.

Bitcoin (BTC) has a long history of forming local tops when events that are anticipated by the market occur. The recent Bitcoin exchange-traded fund (ETF) launch on Oct. 19 was no different and led to a 53% monthly rally to an all-time high at $67,000.

Now that the price has briefly fallen below $60,000, investors are attempting to understand if the 10% correction was healthy short-term profit taking or the end of the bull run. To determine this, traders need to analyze BTC’s previous price activity to evaluate the possible similarities.

Bitcoin price in USD. Source: TradingView
Bitcoin price in USD. Source: TradingView
Bitcoin price on Coinbase (NASDAQ:COIN) in USD. Source: TradingView
Bitcoin 3-month futures annualized premium. Source: Laevitas

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