Watch These Bitcoin Price Levels As $52K Supertrend At Risk Of Failure

Bitcoin faces a battle to maintain its bull market as Mt. Gox redemptions trigger the largest liquidation cascade in years.

BTC Price Super Trend Support Approaching First Test Since 2022

According to data from Cointelegraph Markets Pro and TradingView, the price of Bitcoin (BTC) dropped 5% on July 5 alone. And now, traders are looking at the boundaries that the bulls have to guard.

BTC/USD 1-hour chart. Source: TradingView

For popular trader Matthew Hyland, the first thing that stands out is the support around $52,000.

This forms the basis of Bitcoin’s super trend indicator on weekly timeframes: a foundation for the price since its all-time high of $73,800 in mid-March.

Supertrend uses average true range to create a “Supertend line,” which demarcates buy and sell phases for BTC/USD. The pair has been above the supertrend line since late 2022, when Bitcoin’s last bear market ended.

Bitcoin Supertrend. Source: Matthew Hyland

Looking at previous Bitcoin bull markets, the current decline from all-time highs is still modest.

Since 2016, BTC/USD has dropped by 38% multiple times, bringing the capitulation target to $45,750.

Adam Back, founder and CEO of Blockstream, commented on the phenomenon, criticizing the erratic market sentiment. Instead, he argued that hodlers should increase their exposure to both Bitcoin and the stock of MicroStrategy, the company with the largest BTC treasury of any publicly traded company.

“Reminder, zoom out. Previous bull runs also had half a dozen -30% drawdowns. We are now at about -26% (-27% before),” he wrote on X.

“Actually recent drawdowns seem to be less deep, but people are forgetting the normal bull market pattern. Don’t panic, buy the dip. or buy a little $CMSTR with BTC.”

BTC/USD chart with drawdowns (screenshot). Source: Adam Back

Analyst: Bitcoin history ‘repeating itself as we speak’

Popular trader and analyst Rekt Capital is equally unfazed by the scale of the downturn.

Related: Mt. Gox Begins Refunds in Bitcoin and Bitcoin Cash

“This pullback is -21% deep and 45 days long. In this cycle, the average retrace depth is -22% and the average retrace length is 42 days,” he calculated.

“In terms of retrace depth, this is close to an average retrace. In terms of retrace duration, this is an above average pullback.”

BTC/USD comparison chart. Source: Rekt Capital

In the long term, he added in a further X-post alongside a comparison chart, BTC price history is “repeating itself as we speak.”

BTC/USD comparison chart. Source: Rekt Capital

This article does not contain investment advice or recommendations. Every investment and trading move involves risk and readers should do their own research before making a decision.