Bitcoin (BTC), which has been consolidating for the last five days, is now giving a bearish signal. This negative signal from the leading cryptocurrency Bitcoin has changed the sentiment across the market. Analysts are closely examining BTC’s price movements and critical levels. So will the BTC price catch an uptrend again? Or will we watch bigger declines? Here are expert opinions and analyst comments…
Bitcoin Technical Analysis and Critical Levels
According to technical analysis , BTC broke the lower boundary of the consolidation zone. However, it started a downward movement. Considering the recent price movements, it is estimated that the price could drop by 10% to $86,300.
Currently, Bitcoin is trading above the 200-day exponential moving average (EMA) on the daily chart. However, this suggests that the uptrend is still strong. However, the Relative Strength Index (RSI) has crossed the 70 level, suggesting that there is limited room for upward movement. The RSI is a key technical indicator used to determine whether an asset is in overbought or oversold territory.
Factors Triggering the Downtrend
This BTC breakout resulted in the liquidation of millions of dollars worth of long positions, according to on-chain data provided by Coinglass. According to the data, $47.65 million worth of long positions were liquidated in the last four hours. In comparison, only $8.87 million worth of short positions were liquidated in the same period.
Additionally, $6.65 million worth of long positions and $410,000 worth of short positions were liquidated in the last hour . This massive liquidation of long positions shows that bears are once again dominating the market. It also indicates that the BTC price could fall further in the coming days.
Bitcoin Current Status and Price Analysis
This drop in BTC came just after MicroStrategy completed a purchase of 55,000 BTC worth $5.4 billion. In addition, medical firm Semler Scientific purchased $30 million worth of BTC. However, these purchases were not enough to reduce the downward pressure on the price.
As of now, the 38 percent increase in Bitcoin transaction volume indicates that investor and trader participation has increased. This situation reveals that the market is still being followed intensively despite the decline. As we reported at Kriptokoin.com , investors should closely follow these movements in the market and shape their strategies accordingly.
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