Bitcoin Traders Brace For More Losses Amid Consolidation
The cryptocurrency market is currently in a state of consolidation, with Bitcoin struggling to make significant gains and facing resistance in the daily chart. Despite avoiding further price drops, Bitcoin has yet to fully reverse the losses from June 24th.
One analyst has raised concerns about potential future losses for Bitcoin traders. The analyst pointed out a concerning trend of increasing short orders, indicating a bearish sentiment among sellers. The Bitcoin Net Taker Oscillator indicator also reflects a negative reading, reminiscent of the levels seen before the sharp price drop in 2022.
Currently, Bitcoin is trading near its all-time high, around 20% below the peak reached in mid-March 2024. The cryptocurrency is testing key support levels between $56,500 and $60,000, with the possibility of a further decline to $50,000 if the bearish trend continues.
Additionally, there has been a rise in long liquidations, with leveraged traders on major exchanges like Binance and OKX exiting at a loss. The analyst compared the current liquidation events to those seen during the 2019-2020 correction, which led to a significant price drop in Bitcoin.
Despite the bearish sentiment prevailing in the market, some traders see this as a potential buying opportunity. The decline in user and trader expectations for Bitcoin’s price increase, coupled with the ongoing sideways movement since April 2024, has created a sense of uncertainty among investors.
While the current sentiment may suggest further downside for Bitcoin, some traders believe that the resilience of bulls and the rejection of lower lows could indicate a potential bottoming out. This could present an opportunity for aggressive traders to accumulate Bitcoin at what they perceive to be undervalued prices.
As the cryptocurrency market continues to navigate through uncertain waters, it remains to be seen whether Bitcoin will break out of its consolidation phase or face further losses in the coming days.
