Bitcoin is consolidating and struggling to make gains, look at the price action on the daily chart. Even with the rejection of the low prices, the coin has not yet followed through, decisively reversing the losses of June 24.
Should Bitcoin traders prepare for more losses?
In light of this, an analyst at X said: Believes There may be more losses in the coming days. In a post on
According to the Bitcoin Net Taker Oscillator, the reading is -1.5%. At this level, it is observed at the same point when the price rose to $70,000 in November 2021 before falling sharply throughout 2022.
Bitcoin is heading towards an almost historic high, about 20% from the $73,800 recorded in mid-March 2024. Although the Q1 2024 uptrend defines the current configuration, prices are retesting key support levels built up between $56,500 and $60,000.
If there are deeper losses, as analysts expect, Bitcoin could collapse and reach $50,000. This development would automatically dismiss short narrative in some quarters.
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The downward pressure is compounded by the analyst as well to choose A slight increase in long liquidations, rising to 13% as of June 27. The rise in long liquidations means that leveraged traders across leading exchanges such as Binance and OKX are now exiting with a loss.
The analyst added that what is happening in terms of liquidations is similar to what happened in the 2019-2020 correction, where more long traders were liquidated, and within five months, Bitcoin collapsed by 46%.
If the past is any guide, the same is likely to happen in the coming months. However, the analyst points out that if whales buy more than 500,000 Bitcoin, prices will stabilize and rise.
Bearish Sentiment Grows: Is It Time to Buy Bitcoin?
Santiment data also enhances This is a bearish narrative. In recent weeks, the number of users and traders predicting a rise in Bitcoin has decreased across many social media platforms.
It is worth noting that bearish sentiment has been building since the Bitcoin halving event and the sideways price movement since April 2024. Although traders were optimistic ahead of the Bitcoin halving event on April 20, the failure of prices to break $74,000 has eroded confidence.
However, the current bearish sentiment could be a counter-indicator, especially given the overall resilience of the bulls. Prices remain above $60,000, rejecting attempts to make lower lows.
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Often times, a decline in trader and investor confidence is accompanied by a price decline, which is what we saw in late June. Aggressive traders may see this as a carry opportunity, believing that Bitcoin is undervalued at spot market prices.
Featured image of DALLE, chart from TradingView
