Bitcoin (BTC) price dropped by 2.12% in the past day, following news of the spot Ethereum ETF approvals. This surprised traders who were optimistic about new all-time highs following the cryptocurrency's strong rally earlier in the week, gaining 9% to $72,000. The sudden decline saw BTC fall from a high of $71,980 on May 21 to an intra-day low of $66,606 on May 24.

Trader and analyst Mags suggested that the current correction in BTC could be a "fake out," which has been a recurring pattern for the cryptocurrency. Mags explained that Bitcoin tends to consolidate within a range for a few weeks or months, then breaks below that range, trapping bearish traders, before quickly rebounding and continuing its upward movement.

Matthew Hyland, another analyst, pointed out that BTC's price is approaching a retest of the demand zone between $64,000 and $67,000, which represents the neckline of an inverse head-and-shoulders pattern. Hyland emphasized that Bitcoin had successfully broken out above this pattern and closed a daily candle above it, indicating a bullish structure and potential resistance testing before reaching all-time highs.

Unfortunately, those who were betting on BTC's recovery from current levels faced significant losses on May 23. During a 24-hour period, a total of $227.51 million in leveraged positions were liquidated, with $159.3 million of that belonging to long positions, according to data from Coinglass. In the last hour alone, $46.75 million in BTC leveraged positions were liquidated, with $39.6 million of that being longs.