Bitcoin's Ongoing Dip Triggers Liquidations, Yet Analysts Predict a Potential Rally
Summary:
On June 18, Bitcoin's value continued to decline with a 1.41% drop over 24 hours and a 6.5% fall over the past week, according to Cointelegraph Markets Pro and TradingView. The fall below the critical $65,000 mark led to significant market liquidations. Nonetheless, some analysts maintain a positive outlook for Bitcoin's recovery in the coming weeks, despite the poor momentum across the crypto sector. They noted a 'healthy pull-back' similar to 2017, possibly setting up Bitcoin for a significant upward breakout.
Bitcoin's (BTC) value experienced a further decline on June 18th, with a 1.41% fall during the last 24 hours and a 6.5% decrease over the past week. According to data from Cointelegraph Markets Pro and TradingView, BTC plummeted to a one-month low of $64,237 after failing to uphold the crucial support stemming from the psychological barrier of $65,000. The total market capitalization also witnessed a 2% fall in the past day, situating itself at $2.33 trillion at the time of publication. Comparably, there has been a 60% surge in the total trading volume, indicating the strong sell-side activity in the cryptocurrency market.
The drop of Bitcoin below $65,000 has resulted in significant liquidations throughout the cryptocurrency marketplace. Coinglass data reveals that, over the previous 24 hours, long Bitcoin positions worth $61 million were liquidated, versus $24 million in short liquidations. Around $372 million of leveraged long crypto positions were liquidated within 24 hours, compared to $61.8 million short positions.
Despite this negative momentum throughout the whole crypto sector, led by Bitcoin, some analysts maintain a positive outlook towards Bitcoin's recovery in the coming weeks. According to a June 18th report by K33 Research analysts, "While altcoins have seen a significant long squeeze, BTC leverage remains strong and steady." This optimistic stance seems to be influenced by Bitcoin's "gentle and uneven" price fluctuations as it consolidates within an ascending wedge, as noted by independent analyst, Jelle.
Corroborating this, is an ascending wedge chart posted by Jelle on June 18th which displayed the coiling of BTC price. The latest dropdown sees the pioneer cryptocurrency at the wedge’s ascending trendline's point of interest or "area of interest". According to Jelle, if there's a bounce here, the price could accelerate to "$72,000. Moving forward, the analyst projects an ambitious six-figure target for Bitcoin’s price, at $100,000. Fellow analyst Moustache also predicted high targets, noting an inverse head-and-shoulders pattern forming in Bitcoin's daily timeframe that may confirm a price rise to $87,500.
On the other hand, Rekt Capital suggests that "Bitcoin has been in a constant downturn" all through June, but specifies that a break from the decline is necessary for triggering a price reversal.
Meanwhile, Yoddha, an anonymous analyst, mentioned a resemblance between the current price structure and that seen during the 2015-2017 cycle. According to Yoddha, the correction in the currency is a healthy pull-back prepping BTC for a massive upside breakout, similar to the situation in 2017.
Finally, Daan Crypto Trades highlighted a significant "liquidity level at $65K and $66.3K," which could potentially lure the price when it trades near to it. CoinGlass data pointed out that $64,100 is a crucial bid liquidity area just under the spot price, with around $47 million in buy orders. This area may provide the necessary demand pressure to pull BTC out of its continued downtrend.
Published At
6/18/2024 10:00:00 PM
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