Concern spreads across the global crypto market as Bitcoin (BTC) dips to $56K, halting its progress within the $62K-$66K range. Since reaching its peak of $73,750 in March, the leading cryptocurrency has slid by 23% to hit a two-month low of $56,555.

This downturn has resulted in crypto liquidations exceeding $511.23 million within the past 24 hours. Traders have offloaded over $170.8 million worth of BTC and $135.2 million of Ether (ETH). Recent data from Coinglass reveals that over $50 million worth of BTC has been liquidated in just one hour.

Bitcoin's price has declined by 8.61% over the last 24 hours to $56,981, with its market cap dropping from $1.25 trillion to $1.12 trillion. Currently, Bitcoin remains oversold, as indicated by a relative strength index (RSI) reading of 24.78.

Is Bitcoin Poised for Further Decline?

Analysts suggest that Bitcoin's recent price drop during a corrective phase in the market may indicate an impending bearish trend. Notably, Michaël van de Poppe, founder of MNTrading, underscores potential further downward movements on BTC charts if the correction continues, predicting possible fluctuations within the $56K-58K range.

Crypto analyst Rekt Capital describes the current dip as the "deepest retrace in the cycle," highlighting its similarity to past post-Bitcoin halving cycles in 2016. While Bitcoin experiences this downturn, Ethereum, the second-largest cryptocurrency, has nosedived by 9% to $2,844, with several altcoins witnessing double-digit losses in the past 24 hours. Top alts, including SOL (10.10%), TON (11.6%), and Bitcoin Cash (10.6%), alongside meme coins like PEPE (15.7%), SHIB (13.2%), and DOGE (12.8%) have also faced significant declines.