Thursday, April 18, 2024

Bitcoin Faces Uncertain Outlook as $160 Million in Long Positions Liquidated.

The price of bitcoin (BTC) has continued to decline following days of trading in a range. Although many traders have suffered as a result of the move, especially those who have taken short positions, it is the first indication that the next directional bias may be about to manifest.

$160 million in long-term holdings were closed as Bitcoin declined 2%.
On Tuesday, the price of bitcoin (BTC) fell by about 1.30%, wiping out $158.79 million in long bets compared to $52.37 million in short positions.

In the cryptocurrency arena, liquidations happen when traders’ positions are abruptly terminated because their margin accounts can no longer sustain their open positions. It happens when the asset’s value declines or there is not enough margin to cover maintenance costs.

Compared to Monday’s $142 million, there was a total liquidation of over $210 million, indicating increased trading activity and volatility in the cryptocurrency market.

However, due to erratic inflows into spot Bitcoin exchange-traded funds (ETFs), the price of Bitcoin has been in a slump for the past several days.

Prospects for the price of bitcoin as long-term positions plunge

The price of bitcoin has skewed downward, and the Relative Strength Index (RSI) indicates that this decline may only be getting started because bitcoin is overbought. A sell-off in BTC would be triggered if this momentum indicator fell below the 70 level, indicating that the market is ready to sell.

A sizable red histogram bar is also seen on the Awesome Oscillator (AO), indicating that bears may be making inroads into the Bitcoin market.

The subsequent seller momentum may drive down the price of bitcoin, with a 10% decline predicted to test the supply zone that has turned into a bullish breaker between $45,556 and $46,691. The downtrend would be confirmed if the order block’s midline, at $46,166, were broken and closed below.

However, if this order block continues to hold as support, the price of bitcoin may turn around and rise, offering a chance to purchase before the following leap higher in value.

However, if bulls in bitcoin continue to put in further buying pressure at these prices, the price of bitcoin may move north and break over the upper limit of the ascending parallel channel.

In a very bullish scenario, such a directional bias would set the pace for the BTC market value to reach $60,000, levels last tested on November 21, 2021. It would also highlight the $55,000 milestone. This would represent an increase of 16% over the present levels.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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