Bitcoin's Drawdown Aligns with Past Bear Market Declines
Bitcoin recently experienced a 54.2% drawdown, an event that Binance Research noted aligns with the severity of past bear markets. After adjusting for volatility, this drop corresponds to a 1.94 standard deviation event, placing it in line with the three previous major declines in Bitcoin's history.
At the time of reporting, Bitcoin's price stood at $85,885.07. The cryptocurrency is currently within a bullish structure, supported by key moving averages. The 50-day exponential moving average (EMA50) provides support at $84,690.28, while the 200-day EMA sits at $81,461.2.
Momentum remains intact, as indicated by the 4-hour MACD golden cross at 456.03. The price is also trading within the Bollinger Bands, with upper resistance at $86,688.51. This suggests that any further upward movement may require a retest of the 50-EMA before continuing higher.