Bitcoin Price Correction Nears End: Analyst Predicts 75-80% Complete

Recent market data suggests Bitcoin’s (BTC) price correction may be nearing its end. Analysis from CryptoQuant indicates a significant decrease in the BTC-USDT futures leverage ratio, signaling a healthier market reset. The massive liquidations witnessed over recent weeks have effectively removed many over-leveraged traders, potentially paving the way for sustained price recovery.

Supporting this, Bitcoin’s open interest experienced a considerable drop, falling 28% from $71.8 billion on December 18th to $51.8 billion on April 8th, according to Coinglass. While this deleveraging may cause short-term volatility, it suggests a market primed for long-term stability.

Analyst Perspective: De-risked and Undervalued

Sina, co-founder of 21st Capital, using their Bitcoin Quantile Model, claims Bitcoin is \”significantly de-risked.\” Their analysis suggests the correction may be 75-80% complete, with a potential bottom around $70,000 – $72,000. This, they argue, represents a deeply undervalued asset for long-term holders, barring a significant economic downturn.

Short-Term Outlook: Volatility Corridor

Bitcoin researcher Axel Adler Jr. proposes a short-term price range (volatility corridor) between $75,000 and $96,000 based on short-term holder realized prices. However, he cautions that a break below the 365-day simple moving average could trigger a further drop towards $70,000.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Conduct thorough research before making any investment decisions.