Bitcoin price is rising, with a 1.7% increase in 24 hours. It’s now above $62,000.
Recent warnings by CryptoQuant – a crypto analytics platform – are a good example. suggest Bitcoin’s value could plummet to as low as $52,000, if certain key levels are breached.
The warning comes amid growing insecurity on the Bitcoin derivatives markets, as derivative traders are showing signs of concern. unprecedented caution Comparatively to previous halves cycles.
Bitcoin Risky level
CryptoQuant’s Analysis highlights the declining open interest rates and funding rates for Bitcoin derivatives marketThe aforementioned is a “cautious” The arrival of institutional traders has shifted the trading stance, especially amongst investors. Shiven Moodley is a CryptoQuant analyst.
The traders of derivatives are far more cautious than they were in the past. This year, the market is witnessing the arrival of a number of new institutions.
The analyst believes that, should Bitcoin fall below its critical support level of $60,000, then the cryptocurrency’s top price could drop to as low as $52,000. potential short-term bearish trend.
Derivative Uncertainty
“If the price breaks below $60,000, we might witness a decline to $52,000 before a subsequent rise.” – By @ShivenMoodley
Posting Full Article👇https://t.co/XSBnfexbzZ
— CryptoQuant.com (@cryptoquant_com) April 18, 2024
The presence of Bitcoin Spot Exchange Traded Funds (ETFs) may reduce the impact of this decline through absorption. “excess supply from liquidations” Support zone of $60,000
Moodley is a stated.
In the event that prices fall below $60,000 we may see a dip to $52,000, followed by a rise. Given the dominance of ETFs by institutions, I would not be surprised to see them accumulate excess liquidations close to the 60k level for short-term stability.
BTC Analysts Warn of BTC’s Precarious Position
Ali, a crypto analyst and trader has also stoked fears by pinpointing a crucial price point for Bitcoin. Ali’s research indicates that, if Bitcoin falls to $50,500 then over $15 billion could be liquidated on Binance.
#Bitcoin If the price of a home drops to just $50,500, liquidations will reach $15 billion. #Binance alone! pic.twitter.com/9wQTVwprgx
— Ali (@ali_charts) April 17, 2024
This type of significant liquidation can exert enormous pressure on the markets, leading to further declines in prices and increased volatility.
The outlook is similar to recent warnings by prominent crypto analyst Crypto Rover who also warned about the potential for a liquidation event that could affect short-term holders of Bitcoin climbs back to the crucial price mark of $71,600.
Even though some remain concerned, analysts still believe that Bitcoin will have a bright future. Plan B, a cryptocurrency analyst best known for his S2F (Stock-to-Flow) model, is one of the most prominent. made bullish predictions Bitcoin price forecasts for the future.
Plan B: Bitcoin’s upcoming Halving event The cryptocurrency is expected to reach $100,000 in this year, and $300,000 or more by 2025.
Charts from TradingView and Unsplash.
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