Bitcoin Sinks to New Monthly Low: Analysts Split on What’s Next
Bitcoin dropped as low as $101,000 earlier today, demonstrating the ongoing bleeding out of the cryptocurrency markets. As of this writing, Bitcoin has somewhat rebounded and is currently trading at $101,879. Analysts, however, are searching for the local bottom and fighting for solutions.
$700M Liquidated as Bitcoin Slumps: Longs Take Massive Hit
The cryptocurrency has been in a pronounced downward trend for the last five days, as can be observed from the 1-hour chart, at least over that time period, with lower highs and lower lows regularly occurring. Additionally, Coinglass data shows high numbers of liquidated holdings in the leverage market. Approximately $700 million was lost, a 35% increase over the previous day. Naturally, longs made up the vast majority of that, making up about $600 million of the total.
Bitcoin Teeters on $100K: On-Chain Metrics Warn of Deeper Crash
Important on-chain indicators imply that institutional investors might be pulling back rather than purchasing the dip despite the significant liquidations and steep price drops. Whale netflows have reportedly gone negative, with big holders lowering their exposure throughout the decline, according to data.
Derivatives markets are displaying warning signs in the meantime: funding rates on all major platforms are still negative, suggesting a rise in short positions and pessimism. With the $100,000 psychological support level currently being highlighted as the next significant test, Bitcoin may continue to be susceptible to more losses until whales start to accumulate again and funding levels stabilize.
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