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Rekt (rektarb.xyz)

Rekt

Bitcoin&nbsp;faces a battle to preserve its bull market as Mt. Gox reimbursements spark the biggest liquidation cascade in years.
<h2 data-ct-non-breakable="true" id="btc-price-supertrend-support-nears-first-test-since-2022">BTC price supertrend support nears first test since 2022</h2>
The Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>)&nbsp;price downside hit 5% on July 5 alone, according to data from <a href="https://subscription.cointelegraph.com/?_gl=1*7499wx*_ga*MTQ0MzQ0NzI4Ny4xNzE2MzY1NTA0*_ga_53R24TEEB1*MTcxNjM2NTUwNC4xLjEuMTcxNjM2Njg2MC4wLjAuMA..">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> — and now traders are eyeing lines in the sand that bulls must protect.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/99badb48-01a9-4da0-823d-cc39a16eaec5.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD 1-hour chart. Source: TradingView
 </figcaption>
</figure>
For popular trader Matthew Hyland, <a href="https://x.com/matthewhyland_/status/1809070516898074919" target="_blank" rel="noopener nofollow">first on the radar</a> is support at the $52,000 mark.
This forms the floor of Bitcoin’s supertrend indicator on weekly timeframes — a foundation for price in place since mid-March’s <a href="https://cointelegraph.com/news/bitcoin-analyst-big-move-btc-price-new-73-8-k-record">$73,800 all-time high</a>.
Supertrend employs average true range to create a “Supertend line,” which delineates buy and sell phases for BTC/USD. The pair has been above the supertrend line since the end of 2022, when Bitcoin’s <a href="https://cointelegraph.com/news/bitcoin-2022-bear-market-usual-despite-key-trend-line-loss-analyst">last bear market ended</a>.
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/737b3f20-507d-4da3-a718-b3b291e13c04.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 Bitcoin Supertrend. Source: Matthew Hyland
 </figcaption>
</figure>
Observing prior Bitcoin bull markets, the current drawdown from all-time highs is still modest.
Since 2016, BTC/USD has dipped 38% on multiple occasions, making the capitulation target $45,750.
Commenting on the phenomenon, Adam Back, founder and CEO of Blockstream, criticized fickle market sentiment. Instead, he argued that hodlers should increase exposure to both Bitcoin and the stock of MicroStrategy, the firm with the <a href="https://cointelegraph.com/news/short-microstrategy-investment-bitcion-michael-saylor">largest BTC treasury</a> of any public company.
“Reminder, zoom out. prior bull runs had half a dozen -30% draw downs too. we're at about -26% (-27% earlier),” he <a href="https://x.com/adam3us/status/1809102254512775659" target="_blank" rel="noopener nofollow">wrote</a> on X.
<blockquote data-ct-non-breakable="true">
 “In fact if anything, recent draw-downs seem to be less deep, but people forget the normal bull market pattern. Don’t panic, buy the dip. or buy a bit of $CMSTR with BTC.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/b3f30dae-81db-4b7f-9073-28f111c5f34e.png" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD chart with drawdowns (screenshot). Source: Adam Back
 </figcaption>
</figure>
<h2 data-ct-non-breakable="true" id="analyst-bitcoin-history-repeating-as-we-speak">Analyst: Bitcoin history "repeating as we speak”</h2>
Just as unfazed about the extent of the downside is popular trader and analyst Rekt Capital.
Related: <a href="https://cointelegraph.com/news/mt-gox-repayments-bitcoin-bitcoin-cash">Mt. Gox begins repayments in Bitcoin and Bitcoin Cash</a>
“This pullback is -21% deep &amp; 45 days long. In this cycle, average retrace depth is -22% &amp; average retrace duration 42 days,” he <a href="https://x.com/rektcapital/status/1808901317693247533/photo/1" target="_blank" rel="noopener nofollow">calculated</a>.
<blockquote data-ct-non-breakable="true">
 “In terms of retrace depth, this is almost an average retrace. In terms of retrace duration, this is an above-average pullback.”
</blockquote>
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/fac05130-0c64-4d22-8a5b-9d26e742d9c8.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD comparative chart. Source: Rekt Capital
 </figcaption>
</figure>
Long-term, he added in a further X post alongside a comparative chart, BTC price history is “repeating as we speak.” 
<figure data-ct-non-breakable="true">
 <img src="https://s3.cointelegraph.com/uploads/2024-07/02e7ff12-6109-4738-b64e-7811a72285de.jpeg" alt="" title="">
 <figcaption style="text-align: center;">
 BTC/USD comparative chart. Source: Rekt Capital
 </figcaption>
</figure>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Watch these Bitcoin price levels next as $52K supertrend risks failure

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