In the ever-volatile world of cryptocurrencies, Bitcoin (BTC) enthusiasts are eagerly awaiting signs of a price breakout that could mark the end of the recent range-bound trading pattern. Analyst Credible Crypto has been a beacon of hope for those waiting for fortunes to change by sharing their views on social media. Here are the details…
What’s next for Bitcoin?
Followed by more than 346,000 crypto enthusiasts on the X platform, Credible Crypto believes that Bitcoin is currently stuck in a range-bound environment. In the short term, he predicts a minor corrective decline before a potential bounce. “I am still waiting for the lows below $25,200 to be swept away. “I would like to see $24,800 hold for a reversal from $27,000,” he says.
However, what has caused many in the crypto community to buzz is the claim that Credible Crypto may enter a new bullish trajectory if Bitcoin can break through the key resistance level of around $28,200. According to him, a break above this level could mark the end of Bitcoin’s ongoing consolidation phase. “This volatile price action aside, the two levels you should watch for significant bullish and bearish invalidations are 28,200 (breaking that means I think it’s at the bottom of this correction) and the $24,800 level below us that I’ve 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 on this chart showing that the value of Bitcoin is outpacing other cryptocurrencies. “We’ve hit rock bottom and we’re in a new impulsive environment,” he stressed.
Credible Crypto’s perspective has implications not just for Bitcoin, but for altcoins as well. Credible Crypto predicts that the flow of capital from altcoins to Bitcoin will continue, which will cause the flagship cryptocurrency to reach all-time highs. “Money is flowing from altcoins to Bitcoin at levels we haven’t seen in over two years, and we can expect that to continue until BTC breaks new highs,” he says.
Glassnode data points to a decline for Bitcoin
While Credible Crypto’s insights give Bitcoin enthusiasts hope, recent data from Glassnode, a respected provider of on-chain and financial metrics, is in stark contrast. Glassnode reported that the Average Liquidated Volume (MLV) on Futures Contracts Long Positions for Bitcoin recently hit a 19-month high. This increase, reported via Glassnode’s automatic alert on platform X, reveals that MLV for Bitcoin Long positions reached a staggering $730,576 on OKX exchange. This significant increase in liquidations indicates that traders betting on Bitcoin’s price increase are forced to close their positions at a loss.
https://twitter.com/glassnodealerts/status/1700739756693315870
The $730,000 liquidation figure surpassed the previous 19-month high of $607,216 recorded on September 8, 2022. Data from Coinglass, a leading derivatives market watcher, provides additional context to this liquidation trend, revealing that 33,400 traders have collectively lost over $55 million in funds. The most significant individual liquidation took place on Binance in the Bitcoin – USDT pair, with a trader losing $2.77 million. It is noteworthy that the majority of traders experiencing losses have played to Bitcoin’s price increase. On Binance, 89.96% of such traders saw their funds liquidated, and on OKX, 86.64% of Bitcoin Long traders 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, the price of Bitcoin has remained relatively stable, trading around $25,860, down a marginal 0.05% in the last 24 hours. As Bitcoin continues to hover in the dangerous balance between potential bullish momentum and continued liquidation pressures, the cryptocurrency market remains an arena of high risk and unpredictable consequences. Traders and enthusiasts will be watching closely for signs of a definitive trend in the coming days.
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