Bitcoin flashes a massive bearish signal as the broader crypto market starts to rebound. What’s happening?
- Bitcoin could remain bullish until it trades above $45k. If BTC falls to the $54,700 level, nearly $2 billion worth of long positions will be liquidated.
After a massive price crash on the 5th of August, the market is now recovering. Top assets such as Bitcoin [BTC], Ethereum [ETH], and Solana [SOL] have experienced significant price jumps in the last two days.
Amid this ongoing price recovery, Julio Moreno, CryptoQuant’s Head of Research, shared that Bitcoin was flashing a bear signal.
Bitcoin flashing bearish signal?
In a post on X (previously Twitter), Julio shared that the bull-bear market cycle indicator has entered a bearish zone. This is for the first time since January 2023 that this indicator has flashed a bearish signal.
According to historical data, this same indicator flashed bearish signs during the market crash in March 2020 and May 2021.
While retweeting Julio’s post, Ki Young Ju, the founder and CEO of CryptoQuant, shared on X that Bitcoin could remain bullish until it trades above $45k. In a post, he noted,
“Some indicators are showing bearish signals. However, they could still recover with a rebound, so we need to watch if it stays at this level for a week or two. If it lingers longer, the risk of a bear market grows, and recovery may be difficult if it lasts over a month.”
At press time, BTC was trading above the $57,200 level, and experienced a price surge of over 4% in the last 24 hours. Despite this impressive price surge, trading volume has dropped by 38% during the same period.
This massive fall in trading volume indicates a fear among traders and investors.
Bitcoin technical analysis
According to expert technical analysis, BTC looks bullish and could soar to nearly $60,000 in the coming days.
$60,000 will be the crucial level for BTC as it faces resistance from the trendline and the 200 Exponential Moving Average (EMA).
Source: TradingView
However, if BTC manages to give a breakout of this resistance level, there is a high chance we may see a massive upside rally to $70,000 in the coming days.
Is your portfolio green? Check out the BTC Profit Calculator
As of now, the major liquidation level is near $54,700 on the lower side and if the sentiment changes, and it falls to that level, nearly $2 billion worth of long positions will be liquidated.
Source: Coinglass
Whereas, on the upper side, the major liquidation level is near $58,000. If sentiment remains unchanged and BTC soars to that level, nearly $500 million of short positions will be liquidated.
Take a Survey: Chance to Win $500 USDT
Next: 404,448 Bitcoin moved to permanent addresses: Bull run incoming?
Source