Bitcoin Dips Below $60,000 Amidst 'Whale Games', Long Positions Facing Major Liquidation
Summary:
Bitcoin's value dropped below $60,000 for the first time in seven weeks due to alleged manipulations by 'whales'. The dip resulted in long position liquidations worth about $136.5 million in Bitcoin and a total of $265 million in the crypto market within 24 hours. Analysts and traders have compared the current drop to previous ones and highlighted the possibilities of buying opportunities. The report advises investors to do their research before making any decisions.
Bitcoin's value dropped below the $60,000 mark for the first time in seven weeks on June 24. This fall in price, some analysts suggest, is due to manipulative practices by large-scale Bitcoin holders, often referred to as 'whales'. The trading data shows the low for BTC was $59,809 on Bitstamp, this drop occurred after Wall Street market opened, incurring a 5% loss for BTC/USD.
Material Indicators, a popular trading tool, pointed out a pattern wherein 'whales' alter liquidity, affecting the price momentum. They also noted that the Bitcoin trading volumes are currently extremely volatile and this makes it easier for prices to change rapidly. They expressed concern that these 'Whale Games' have begun earlier in the week than expected.
An accompanying chart detailed liquidity clusters for BTC/USDT pair on the world's largest crypto exchange, Binance. Material Indicators warned about forthcoming economic data releases in the U.S and mentioned that 'spoofing’, an act of artificially inflating or deflating prices, was happening due to whale actions.
As per CoinGlass data, the implications of this drop below $60,000 have been severe for BTC long positions, with a total liquidation of $136.5 million, with the total crypto market witnessing a loss of $265 million in a 24-hour span.
Contrasting the present drop with previous ones since the start of Bitcoin's bull market in 2023, Scott Melker, prominent trader and host of the "Wolf of All Streets" podcast, suggested a potential price floor due to Bitcoin's Relative Strength Index (RSI) hitting a 10-month low. He noted that this is the first time RSI has hit this level since August 2023.
The RSI serves as an indicator of possible buying opportunities when the value falls below 30, implying the asset is 'oversold'. The current reading was 26.7 at the time of the report.
Rekt Capital, another well-known trader and analyst, emphasized that the recent drop is relatively mild compared to previous drops. He calculated an average retrace depth of -22% and length of 42 days since the bear market low of 2022. By these measures, the current pullback at -16% deep and 35 days long, is less than the average drop, both in terms of the duration and depth.
This document holds no investment advice or suggestions. Every investment and trading movement comes with risk; therefore, the reader is urged to do their own research before coming to a decision.
Published At
6/24/2024 9:07:29 PM
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