Bitcoin has been consolidating and struggling to gain gains. The daily chart shows this. The coin is yet to reverse the losses from June 24, despite the fact that it has rejected lower prices.
Bitcoin traders: Should they expect more losses?
One analyst at X has a good explanation for this. thinks There could be even more losses over the next few days. On X, an on-chain analysis highlighted a concerning trend. Despite optimism in the Bitcoin trading community, sellers keep accumulating more short orders.
The Bitcoin Net Taker Oscillator indicates a reading of -1,5%. It is also at this point that prices reached as high $70,000 in 2021 and then dropped sharply during 2022.
Bitcoin has reached a new high of about 20% from the $73,800 it was printed at in March 2024. While the formation of the present is defined by Q1-2024’s uptrend, the prices have retested key support between $56,500-$60,000,000.
BTC may crash to $50,000 if there are even deeper losses as projected by the analyst. Some would consider this a disqualification of the narrative about short-squeeze.
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In addition to the analysts’ bearish view, picked out An increase of 13% in long-term liquidations as of the 27th June. Long liquidations are on the rise, meaning that traders who use leveraged trading across major exchanges such as Binance and OKX They are currently exiting with a deficit.
Analyst added that the liquidation of long-term traders is comparable to what happened in 2019 and 2020. In the next five months BTC dropped by 46%.
The same thing could happen in the next few months if the past is any guide. Analysts note that prices could shoot up if whales purchase more than 500,000 BTC.
The Bearish Trend is Building: Is it Time to Buy Bitcoin?
Data on Santiment reinforces This bearish narrative. The number of people who expect BTC to rise has dropped dramatically across social media in recent weeks.
Note that the bearish mood has increased since the Bitcoin halves and sideways price movement since April 20, 2024. Although traders had been optimistic before the Halving on April 20th, the inability of prices to reach $74,000 has eroded their confidence.
Still, the current bullish sentiment may be an indicator of contrarianism, particularly when you consider the overall resilience and strength of the bulls. Prices remain above $60,000, rejecting attempts for lower lows.
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As of late June, this was the case. Trader and investor confidence is often declining. This could be a good opportunity for aggressive traders to load up on BTC, as they believe it is currently undervalued.
Chart by TradingView with DALLE as the featured image
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Source: www.newsbtc.com