Bitcoin lost all of its 2021 gain, bouncing below $29 000

The price of bitcoin fell below $29 000 last night. Having reached this point, the cryptocurrency actually lost the entire gain in 2021, but was able to partially win back positions and is again trading above $33 000 at the time of this publication.

The fall for the week is 20%, and from high to low is about 30%. Bitcoin had to deal with such corrections many times during the 2017 bull rally, but it was the first in the current cycle. The decline for the session on Thursday reached 13%, which was the largest value since the March collapse, when in one day Bitcoin lost 39% of its value.

The depth and speed of the fall strengthened the margin positions. The volume of liquidations in the market as a whole amounted to $1.7 billion. Among the leading traders there were 2.5 times more long positions than short ones. On January 10, when, after a continuous rise, Bitcoin first decided to change growth for the decline, the volume of liquidations reached $2.5 billion.

At the same time, the bulls do not lose hope to take the initiative into their own hands.

“Bitcoin’s behavior is similar to May-June 2017, when the price was in the $3 000–2 000 range before making a breakthrough higher,” said Mike McGlone, an analyst at Bloomberg.

“I would have preferred a major base to form and the price to drop a little lower. The stronger the pullback, the larger the base and, therefore, the higher the likelihood of Bitcoin’s rise to $100 000 in 2021, “ according to one of the analysts.

Along with Bitcoin, altcoins began to fall too, and the segment’s capitalization in 24 hours decreased by $150 billion. So, Ethereum fell by 10% and is traded at about $1 165. A comparable drop is shown by Bitcoin Cash, Cardano and Monero. Tezos holds the best position in the upper part of the market — by the end of the last day it remains at a slight advantage.