dailyhodl.com
Crypto trader Lark Davis says the recent Bitcoin (BTC) correction is not giving him any reason to hit the panic button.
In a new video, Davis tells his 463,000 YouTube subscribers that the current Bitcoin pullback is relatively shallow, even though it erased all of the largest crypto asset by market cap’s gains this month.
“So far, up to this point, the price of Bitcoin is only down, at its peak today, it’s only down 11.5% today from the recent all-time high… Back in October, we had a 14% peak to bottom move… Your average Bitcoin correction during a bull run is 20% plus.”
Davis points out that Bitcoin plunged 25% from around $53,000 to $39,600 in September and adds that a similar corrective move from the all-time high could push BTC down to $53,000.
Citing data from crypto insights firm Glassnode, Davis looks at the unspent transaction output (UTXO) realized price distribution metric (UPRD) and highlights $53,000 as crucial on-chain support.
“The volume of Bitcoin last moved above $1 trillion market cap has now reached 3.45 million Bitcoin. This means 18.3% of the supply was transacted above $53,000, demonstrating capital inflows…
A lot of Bitcoin has changed hands above the $53,000 mark, meaning there’s a lot of people bullish on the future of the price of Bitcoin… I think this makes the mid-$50,000 zone a very, very key area of price support for Bitcoin.”
BTC is currently trading at $60,656, slightly down from November’s opening price of $60,960.