Bitcoin's 26.6% Drop May Mark Peak Correction in Current Bull Market

In Brief:

Bitcoin has fallen 26.6% from its $109,500 peak, nearing the largest correction of this cycle.

Analysts warn that a close below the 50-week EMA could signal a potential bear market.

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Bitcoin’s latest correction has reached 26.6%, from a high of $109,500 to recent lows, according to CryptoQuant research director Julio Moreno. While the drop is modest compared to past bear markets—73% in 2022 and 83% in 2018—it could represent the steepest pullback in the current bull cycle.

Ecoinometrics notes that BTC’s recovery has become more difficult amid weakness in the Nasdaq, suggesting rising macroeconomic headwinds. The $65,000 to $69,000 range is being closely watched as key support.

Notably, MicroStrategy, a major corporate holder of BTC, has not added to its position since March 31. The firm’s total investment stands at $35.65 billion, currently returning only 17% amid the downturn.

Should Bitcoin close this week below its 50-week exponential moving average (EMA), analysts say it may confirm a shift into a broader bearish phase.

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