As an experienced financial analyst, I’ve seen my fair share of market fluctuations and trends in the cryptocurrency space. Based on the current state of Bitcoin (BTC), it appears that we are in a period of prolonged fear and uncertainty amongst traders. The tight trading range between $65,000-$66,000 without any clear directional move is a telltale sign of trader fatigue and disinterest.
As a crypto investor, I’ve noticed that Bitcoin has been trading in a narrow band between $65,000 and $66,000 without any significant catalyst pushing it towards a clear direction. Additionally, the on-chain metrics for Bitcoin suggest that there’s decreasing enthusiasm among investors and traders.
As a crypto investor closely monitoring the market, I’ve noticed that Bitcoin’s price has been bouncing between $65,000 and $66,000 for an extended period. According to on-chain data from Santiment, this situation is causing significant fear and disinterest among traders. Such prolonged uncertainty and doubt (FUD) are uncommon occurrences in the crypto market and may indicate a continued capitulation among traders.
According to Santiment’s analysis, the trader exhaustion and persistent buying by large investors often signals an approaching price surge, bringing profits for those who remain invested.
Photo: Santiment
- Bitcoin Short Sellers in Panic
From a short seller’s perspective, the fear mounts as we hope the Bitcoin price won’t surpass $70,000 in the imminent future. Should this scenario unfold, it would result in significant liquidations for us.
Based on the data from CoinGlass, I’ve calculated that over $1.67 billion worth of short positions would be liquidated if the Bitcoin price were to reach approximately $70,000. The last time we saw Bitcoin trading around this level was back on June 8th.
On June 17, an anonymous crypto trader identified as Ash Crypto expressed on platform X that an enormous number of Bitcoin short positions were being liquidated at the peak levels. The next day, CEO of Discover Crypto, Joshua Jake, concurred, commenting that the markets are extremely bullish currently and that both Bitcoin and Ethereum have accumulated significant liquidations. A rebound is imminent.
The record-breaking $33.35 billion Bitcoin Open Interest was reached on June 7 of this month. However, it has subsequently decreased by 7.99% due to the recent sideways price action for Bitcoin. On a positive note, the current Open Interest represents an impressive 82% increase compared to the beginning of the year.
BTC Liquidations Essential Before Hitting New All-Time High
As a market analyst, I’ve observed the recent price consolidation of Bitcoin. Despite this, renowned Bitcoin analyst Willy Woo asserts that there is still excess excitement in the market. Consequently, significant Bitcoin liquidations could be necessary for the BTC price to continue its upward trend and reach new record highs.
Before we can confidently continue with more bullish actions towards new all-time highs for Bitcoin (BTC), there are still a significant number of liquidations that need to occur first. I understand it’s disappointing, but BTC won’t surpass its previous records until we experience more periods of decline and monotony.
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2024-06-20 14:34