As a long-term crypto investor with experience in the market since 2017, I have witnessed numerous price swings and trends. The current consolidation of Bitcoin and the potential for more losses, as suggested by some analysts, is concerning but not unexpected.
Bitcoin‘s price is currently stabilizing after facing difficulties in achieving further growth. The daily chart shows a hesitant market as Bitcoin fails to confirm a clear upward trend following the rejection of lower prices. Despite this setback, Bitcoin has yet to demonstrate a strong commitment to reversing its losses from June 24th.
Should Bitcoin Traders Brace For More Losses?
As a crypto investor following the analysis on platform X, I’ve noticed a concerning trend pointed out by one of its on-chain experts. In spite of the general optimistic sentiment within the Bitcoin trading community, this analyst has drawn attention to the fact that sellers have been persistently increasing their short orders.
As a Bitcoin market analyst, I’ve noticed that the Net Taker Oscillator indicator currently shows a reading of -1.5%. This level is identical to what was observed back when prices reached an all-time high of around $70,000 in November 2021. However, after this peak, the market experienced significant downturns throughout 2022.
As a financial analyst, I observe that Bitcoin’s price is currently hovering close to its all-time high, which was reached at around $73,800 in mid-March 2024. The upward trend of the first quarter (Q1) 2024 defines this price formation. However, prices are presently retesting some crucial support levels that lie between $56,500 and $60,000.
As a researcher examining potential market outcomes, I’ve come across an analysis projecting that Bitcoin (BTC) could experience significant losses if certain conditions materialize. If these deeper losses occur and BTC reaches $50,000, the short-squeeze narrative may no longer hold weight for some investors.
As a crypto investor, I’ve noticed the analyst’s bearish assessment being compounded by an uptick in long liquidations. These liquidations reached 13% as of June 27. This surge in long liquidations indicates that traders using leverage on major exchanges like Binance and OKX are now cutting their losses and exiting their positions.
The analyst pointed out that the current market situation with regard to liquidation bears some resemblance to the events of the 2019-2020 correction. Consequently, a larger number of long traders were forced to sell their Bitcoin holdings, and within a five-month period, the cryptocurrency experienced a significant decline of approximately 46%.
Based on historical trends, it’s reasonable to anticipate that similar events may occur in the next few months. Yet, the analyst cautions that a significant purchase of Bitcoin by whales could potentially lead to price stability and subsequent growth.
The Santiment data lends further credence to the pessimistic outlook for Bitcoin. Over the past few weeks, there has been a significant decrease in the number of individuals expressing optimism about Bitcoin’s price increase on various social media sites.
As an analyst, I’ve observed a growing bearish outlook towards Bitcoin since the halving event in April 2024. Initially, traders were hopeful that this event would lead to a significant price increase. However, the lack of a clear upward trend beyond $74,000 has dampened their confidence.
As an analyst, I’ve noticed that despite the prevailing bearish attitude, it might be prudent to consider the opposite perspective. The persistent refusal of prices to fall below the $60,000 mark could serve as a contrarian signal. In other words, the market’s resilience in the face of bearish sentiment could potentially lead to an upward trend.
Trader and investor confidence frequently wane during market bottoms, a phenomenon observed around late June. Bold traders may interpret this as an opportune moment to buy, convinced that the price of Bitcoin is underestimated based on current market rates.
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2024-06-28 18:41