Breaking Down Bitcoin's Retreat to $56K: A Call for Caution？

• Bitcoin (BTC) fell to $56,555, its lowest level in 2 months.

• BTC liquidations from the market totaled over $170.8 million in the last 24 hours.

Distress grips the global crypto market as Bitcoin (BTC) sinks to $56K, slamming the brakes on its momentum within the $62K-$66K zone. From its all-time high (ATH) of $73,750 in March, the largest-capped crypto has retreated by 23% to hit its 2-month low of $56,555.

Consequently, crypto liquidations in the past 24 hours surpassed $511.23 million. Traders have liquidated over $170.8 million worth of BTC and $135.2 million Ether (ETH). According to data from Coinglass, just in the past 1 hour, over $50 million worth of BTC were offloaded.

BTC/USDT 4-Hour Price Chart (Source: TradingView)

As per data, the price of BTC has decreased by 8.61% in the last 24 hours to $56,981 as of the time of writing. Its market cap dropped from $1.25 trillion to $1.12 trillion. Bitcoin is currently in the oversold zone, as indicated by its relative strength index (RSI) reading of 24.78.

Is Bitcoin Headed for a Further Dip？

As pointed out by analysts, this price drop during such a corrective period in the market flashes signals of a possible bearish phase. Emphasizing this, Michaël van de Poppe, founder and CEO of trading firm MNTrading, highlights the potential for further “downsides” in BTC charts if the correction persists. According to his analysis, prices could continue to fluctuate within the $56K-58K range.

#Bitcoin is at the end of the correction.

It's already down 20% from the highs and we'll have some more downside to happen from here.

On the other hand, the second largest crypto ETH plummeted by 9% to a low of $2,844. A pool of altcoins displayed double-digit losses over the last 24 hours. Especially, the top alts recorded losses as follows: SOL (10.10%), TON (11.6%), Bitcoin Cash (10.6%). Meanwhile, memecoins such as PEPE dipped by 15.7%, SHIB by 13.2%, DOGE by 12.8%, FLOKI by 10.7% and BONK by 10.25%.