Bitcoin News- Even with Bitcoin under $65K, traders maintain that its price is ‘high and steady
Crypto News– On June 18, Bitcoin’s (BTC) price continued its downward correction, experiencing a 1.41% decline over the past 24 hours and a more substantial 6.5% drop over the last seven days. This downward trend highlights the ongoing volatility in the cryptocurrency market.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin’s value fell to a one-month low of $64,237. This decline was particularly significant as it broke through the crucial psychological support level of $65,000, a threshold many traders had been watching closely.
The breach of the $65,000 support level has raised concerns among investors, as it suggests potential further declines. Despite this, some market analysts remain optimistic, believing that Bitcoin’s long-term outlook remains positive. However, the recent price movements underscore the challenges and uncertainties inherent in the cryptocurrency market.
Similarly, the total market capitalization of the cryptocurrency market has experienced a noticeable decline, dropping by 2% over the last 24 hours to settle at $2.33 trillion at the time of publication. This decline in market cap is indicative of the broader bearish sentiment that has gripped the crypto market. Notably, there has been a significant 60% increase in total trading volume, which underscores the intense sell-side pressure currently at play. This surge in trading activity highlights how traders are rushing to adjust their positions in response to the market downturn.
Bitcoin’s drop below the psychologically important $65,000 mark has had a profound impact on the entire cryptocurrency market, leading to massive liquidations. When Bitcoin breaches such a crucial level, it often triggers a cascade of automated sell orders and margin calls, which can amplify the downward movement. This recent decline has caused a wave of liquidations, forcing many traders to close their leveraged positions at a loss.
Data from Coinglass reveals the extent of these liquidations. Over the past 24 hours, a staggering $61 million worth of long Bitcoin positions have been liquidated. Long positions are essentially bets that the price of Bitcoin will rise, so this large-scale liquidation indicates that many traders who were optimistic about Bitcoin’s price prospects have been caught off guard by the recent downturn. In contrast, $24 million worth of short Bitcoin positions, which are bets that the price will fall, have also been liquidated, though to a much lesser extent. This imbalance between long and short liquidations suggests that bullish traders have suffered significantly more in the recent market movements.
The broader crypto market has not been spared either. Approximately $372 million worth of leveraged long positions across various cryptocurrencies have been liquidated in the past 24 hours. This figure dwarfs the $61.8 million in short positions that have been liquidated, indicating that the sell-off has been particularly brutal for those betting on rising prices. These large-scale liquidations reflect the high levels of leverage in the market, where traders borrow funds to amplify their positions. While leverage can enhance gains in a rising market, it also magnifies losses when the market turns against traders.
Despite the current downturn affecting the entire cryptocurrency sector, with Bitcoin leading the decline, analysts maintain a sense of optimism about BTC’s potential recovery in the coming weeks. This positive outlook persists even in the face of poor momentum and significant market corrections.
Analysts at K33 Research expressed their confidence in a report published on June 18. They highlighted that while many altcoins have experienced a severe long squeeze, Bitcoin’s leverage has remained relatively high and stable. This stability in Bitcoin’s leverage suggests that traders are still willing to bet on BTC’s price recovery, indicating a resilient belief in its long-term potential despite the recent setbacks.
Furthermore, independent analyst Jelle has observed Bitcoin’s price action as being mild and choppy, which he interprets as a sign of consolidation within an ascending wedge pattern. This technical formation typically suggests a period of accumulation, where the price oscillates within converging trend lines before eventually breaking out, often to the upside. Jelle’s analysis implies that Bitcoin may be building a foundation for a stronger upward movement once this consolidation phase concludes.
This sentiment of cautious optimism is shared by several market observers who believe that Bitcoin’s current price behavior is part of a natural correction phase rather than the start of a prolonged bear market. They argue that such corrections are healthy for the market, allowing it to shake out over-leveraged positions and reset for more sustainable growth.
The ongoing market volatility has undoubtedly tested the resolve of many traders and investors. However, the persistent confidence among analysts suggests that the underlying fundamentals of Bitcoin remain strong. Factors such as institutional interest, technological advancements, and broader acceptance of cryptocurrencies continue to provide a solid foundation for Bitcoin’s long-term growth.
In summary, despite the challenging market conditions and the recent decline in Bitcoin’s price, analysts are not swayed from their positive outlook. They believe that Bitcoin’s current consolidation and the stability of its leverage positions indicate a potential for recovery in the near future. As the market navigates through this correction phase, many are watching closely for signs of stabilization and the next upward movement in Bitcoin’s price trajectory.
Furthermore, the analyst has set an ambitious target for Bitcoin’s price, predicting it could reach six figures, specifically $100,000. This optimistic forecast reflects a strong belief in Bitcoin’s potential to rebound and surge beyond its previous highs.
This bullish sentiment is shared by fellow analyst Moustache, who has also set high expectations for Bitcoin. Moustache explained that the BTC price appears to be forming an inverse head-and-shoulders pattern on the daily timeframe. This technical analysis pattern is often considered a reliable indicator of a potential bullish reversal, where the price, after forming three distinct troughs, is expected to break out upwards.
Moustache’s analysis, illustrated in the figure below, suggests that if this inverse head-and-shoulders pattern is confirmed, Bitcoin’s price could experience a significant rise. The target for this pattern points to a price level of approximately $87,500. This target is derived from the height of the pattern added to the breakout point, which provides a projected upward move for Bitcoin.
Meanwhile, the pseudonymous analyst Yoddha has weighed in with an intriguing perspective. Yoddha pointed out that Bitcoin’s current price behavior is reminiscent of the patterns observed during the 2015-2017 cycle. This historical comparison provides a basis for understanding the present market dynamics and potential future movements.
In a series of charts shared on X, Yoddha elaborated on this comparison, noting that the recent price correction should be seen as a healthy pullback rather than a cause for concern. According to the analyst, this pullback is a natural part of Bitcoin’s price cycles, setting the stage for a significant breakout to the upside, similar to what occurred in 2017.
Daan Crypto Trades has observed a high liquidity level at $65K and $66.3K, which he suggests could act as a magnet when price trades close to it. This means that these levels may attract the price towards them due to the concentration of trading activity and orders around these points. High liquidity levels often create strong support or resistance areas because of the substantial buy and sell orders clustered there, influencing the market dynamics.
Supporting this observation, data from CoinGlass highlights that $64,100 is a significant area of bid liquidity just below the current spot price. At this level, there are approximately $47 million in buy orders. This substantial bid liquidity indicates that there are many traders ready to purchase Bitcoin at $64,100, providing a robust support level that could prevent the price from falling further.
This area could generate the necessary demand pressure to lift BTC out of its extended downtrend.
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