As a seasoned researcher with a penchant for cryptocurrencies and a knack for reading between the lines of market trends, I find myself cautiously optimistic about Bitcoin’s current position. The recent sell-off has indeed been brutal, with over $500 million in long positions liquidated in just one day – a stark reminder of the volatility that characterizes this digital gold rush.
On November 26, Bitcoin (BTC) experienced a slight recovery from its recent multi-day lows, following a harsh day that liquidated more than half a billion dollars worth of cryptocurrency long positions.
Bitcoin risks new sell-off if $92,500 zone lost
According to data from both CryptoMoon Markets Pro and TradingView, the local Bitcoin (BTC) price bottom on Bitstamp was formed at approximately $92,600.
On November 25th, the value of Bitcoin relative to the U.S. dollar dropped approximately $5,000 during a single day, and while there was a slight recovery from the lowest points, it didn’t persuade investors that the downward trend had ended completely.
In one section of his Reddit post discussing 4-hour timeframes, the co-founder of Material Indicators, Keith Alan, stated that this chart does not appear to align with a verified Bitcoin support test.
“At least not without landing on anything that looks like s prior consolidation or R/S Flip level. I could be wrong, but this feels like a short term bounce to trap some longs.”
According to well-known trader Skew, it’s crucial for buyers to maintain control in the region just below the recent price troughs, a key area of interest.
“To me the $92.5K – $92K area on BTC is very important now,” he told X followers.
“Losing that I think the market as whole would sell off.”
A further post described $92,500 as the “pivotal price between higher & a deeper correction.”
Observeably, the current retreat, much like before, is approximately the same percentage-wise compared to Bitcoin’s all-time high (ATH) and its initial low pullback, as pointed out by Skew,” referring to Bitcoin’s earlier journey to $93,500 in November.
BTC traders retain taste for leverage
Over the past 24 hours, I’ve seen that over half a billion dollars in crypto positions have been liquidated, as per the data I’m tracking from CoinGlass.
Sina, co-founder of asset management firm 21st Capital, commented appreciatively on how smoothly the leveraged long positions were handled in situation X. He noted that there was no need for liquidation on the long side.
“Now imagine what can happen if the price begins rising and takes out that $1.5B short liquidation level at $97K.”
As a researcher examining the cryptocurrency market, I find myself intrigued by the possibility that Bitcoin could mount another push towards the $100,000 mark, provided that funding rates remain within manageable boundaries.
Keeping a watchful eye, Axel Adler Jr., who contributes to the on-chain analytics platform CryptoQuant, issued a word of caution. Despite the recent liquidation incident, total leverage in the market remains high.
Though I’ve noticed some recent reduction in debt, it seems that the overall level of borrowing in the crypto market is still quite substantial, according to CryptoQuant data.
“Key long positions were built around $93K, giving bears a chance to profit before the price approaches this level.”
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2024-11-26 11:31