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Bitcoin is consolidating, struggling to make gains, and look at the price action on the daily chart. Even with lower rates rejected, the currency has yet to follow through, decisively reversing the June 24 losses.
Should Bitcoin traders prepare for more losses?
In light of this, an analyst at X said: Believes There could be more losses in the coming days. In a post on X, the on-chain analyst highlighted a worrying trend: Even amidst the optimism of the Bitcoin trading community, sellers continue to pile on more short orders relentlessly.
According to the Bitcoin Net Taker Oscillator, the reading is -1.5%. At this level, it is observed at the same point when the price rose to $70,000 in November 2021 before falling sharply throughout 2022.
Bitcoin is trending at almost all-time highs, roughly 20% from the $73,800 printed in mid-March 2024. Although the Q1 2024 uptrend defines the current configuration, prices are retesting key stacked support levels Between $56,500 and $60,000.
If deeper losses occur, as analysts expect, Bitcoin could collapse, reaching $50,000. This development would automatically rule out the short squeeze narrative in some quarters.
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The downward pressure is compounded by the analyst as well to choose There has been a slight increase in long liquidations, rising to 13% as of June 27. The increase in long liquidations means that traders have taken advantage of leverage across leading exchanges like Binance and Binance. OK x They now exit at a loss.
The analyst added that what is happening regarding the liquidation is similar to the events of the 2019-2020 correction. After that, more traders were liquidated, and within five months, Bitcoin had collapsed by 46%.
If the past is any guide, the same is likely to happen in the coming months. However, the analyst notes that if whales buy more than 500,000 BTC, prices will stabilize and rise.
Bearish Sentiment Growing: Is It Time to Buy Bitcoin?
Health data too enhances In recent weeks, the number of users and traders anticipating a rise in the price of Bitcoin has decreased across multiple social media platforms.
It is worth noting that bearish sentiment has been building since the BTC halving event and sideways price movement since April 2024. Although traders were optimistic before the BTC halving event on April 20, the failure of prices to breach $74,000 eroded confidence.
However, the current bearish sentiment may be a contrarian indicator, especially given the general resilience of bulls. Prices remain above $60,000, rejecting attempts to record lower lows.
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Often times, low trader and investor confidence accompanies bottoms, a situation seen in late June. Aggressive traders may view this as an opportunity to load, believing that BTC is undervalued at spot exchange rates.
Featured image of DALLE, chart from TradingView
