Viewpoint | Bitcoin has experienced its biggest pullback since March 12, and it should have rebounded long ago

Raoul Pal, global macro investor and CEO of Real Vision Group, also noted that Bitcoin’s weekly RSI has fallen to levels comparable to “the correction during the 2017 bull run (before Bitcoin entered multidimensional space)”.

According to TradingView data, Bitcoin plunged about 15% over the weekend, with the price of Bitcoin falling from $55,000 to around $47,250 on Sunday.

Bitcoin is approaching oversold levels from March 2020…
— Raoul Pal (@RaoulGMI) April 25, 2021

Pal added: "Corrections in a bull market are opportunities, not threats."

On-chain analytics provider Glassnode also noted the severity of Bitcoin’s decline, reporting that the number of losing Bitcoin addresses reached nearly 6.4 million on April 25, a nine-month high. Despite this, 86% of Bitcoin addresses are currently still profitable.

The percentage of Bitcoin supply that is in profit (7d MA) just hit a 6-month low of 85.938%
The last 6-month low of 85.989% was on April 25, 2021
— glassnode alerts (@glassnodealerts) April 26, 2021

The market appears to have agreed with Pal’s claim that Bitcoin was long overdue for a rebound, with Bitcoin rebounding 11.5% in six hours after setting a local low of around $47,000 earlier today.

According to a chart from Glassnode, analyst William Clemente III observed that $88.7 million in Bitcoin shorts were liquidated during the Asian trading session on Monday morning as the market quickly rebounded.

Shorts are suffering! $88,696,765 in Bitcoin shorts liquidated in the last two hours — William ClementeIII (@WClementeIII) April 26, 2021

Despite the sharp rebound, Bitcoin has fallen 27% from its all-time high of $65,000 on April 14. Bitcoin’s dominance fell to 50%. The last time Bitcoin’s market share was below 50% was in July 2018, according to TradingView data.

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