In the ever-volatile world of cryptocurrencies, Bitcoin (BTC) enthusiasts are eagerly awaiting signs of a price breakout that could signal the end of the recent range-bound trading pattern. Analyst Credible Crypto shared his views on social media, becoming a beacon of hope for those waiting for a change of fortune. Here are the details…
What’s next for Bitcoin?
Credible Crypto, followed by over 346,000 crypto enthusiasts on the X platform, believes Bitcoin is currently stuck in a range-bound environment. In the short term, he predicts a small corrective decline before a potential rebound. “I still expect a sweep of the lows below $25,200. “I would like to see $24,800 hold for a reversal from $27,000,” he says.
However, what has many in the crypto community buzzing is Credible Crypto’s bet that Bitcoin could enter a new bullish trajectory if it can surpass the key resistance level of around $28,200. According to him, a break above this level could signal the end of Bitcoin’s ongoing consolidation phase. “This volatile price action aside, the two levels you need to watch for significant bullish and bearish invalidations are 28,200 (a break of which, in my opinion, means the bottom of this correction is in progress) and below us the $24,800 level that I have been talking about for a while,” the analyst said.
Altcoins are also affected
For further confirmation, Credible Crypto is closely watching the Bitcoin dominance (BTC.D) chart, which measures how much of the total cryptocurrency market cap is attributed to Bitcoin. The analyst sees bullish signs in this chart, showing that Bitcoin’s value is outpacing other cryptocurrencies. “We have hit rock bottom and are in a new impulsive environment,” he emphasized.
Credible Crypto’s perspective has implications not only for Bitcoin but for altcoins as well. Credible Crypto predicts that capital flows from altcoins to Bitcoin will continue, leading to the leading cryptocurrency reaching a new all-time high. “Money is flowing from altcoins into Bitcoin at levels we haven’t seen in over two years, and we can expect this to continue until BTC breaks new highs,” he says.
Glassnode data points to a decline for Bitcoin
While Credible Crypto’s views give hope to Bitcoin enthusiasts, the latest data from Glassnode, a respected on-chain and financial metrics provider, provides a stark contrast. Glassnode reported that the Average Liquidated Volume (MLV) on Futures Contract Long Positions for Bitcoin recently rose to a 19-month high. This increase, reported via Glassnode’s automated alert on the X platform, reveals that MLV for Long positions in Bitcoin reached a staggering $730,576 on the OKX exchange. This significant increase in liquidations shows that traders who bet on Bitcoin’s price increase are forced to close their positions at a loss.
The liquidation figure of $730 thousand surpassed the previous 19-month high of $607,216 recorded on September 8, 2022. Data from Coinglass, a leading derivatives market tracker, provides additional context to this liquidation trend, revealing that 33,400 investors collectively lost over $55 million in funds. The most significant individual liquidation occurred on Binance in the Bitcoin – USDT pair, with one trader losing $2.77 million. It is noteworthy that the majority of traders who suffered losses bet on Bitcoin’s price increase. On Binance, 89.96% of such investors saw their funds liquidated and on OKX, 86.64% of Bitcoin Long investors suffered the same fate.
How are the situations in other exchanges?
Other exchanges such as Bybit, Huobi, CoinEX and Bitfinex also experienced significant losses among Bitcoin Long investors. Despite this liquidation frenzy, Bitcoin’s price has remained relatively stable, hovering around $25,860, down a marginal 0.05% in the last 24 hours. As Bitcoin continues to navigate the precarious balance between potential bullish momentum and ongoing liquidation pressures, the cryptocurrency market remains an arena of high risk and unpredictable outcomes. Traders and enthusiasts will be watching closely for signs of a definitive trend in the coming days.