While Bitcoin (BTC) is facing a $200 million long loss due to price weakness this past weekend, traders are voicing the possibility of a deeper correction. The current price of BTC is hovering around $68,376, which raises concerns in the market. Famous trader Titan of Crypto pointed out the possibility of a deeper correction for BTC/USD in his latest market analysis. Titan stated that Bitcoin’s recent price struggles have become even more difficult as it rebounded from an all-time high near $73,800.
Bearish expectations for Bitcoin
On the daily timeframe, the battle over Bitcoin’s price continues. Investors’ concerns about the upcoming United States Presidential Elections are further exacerbating an already overheated Bitcoin trading environment. Open positions reaching record levels was another factor that made investors nervous. Observers note the risk of further pullback in Bitcoin price, with Titan of Crypto asking: “Are we expecting a bounce to the local bottom at $66,200?” It poses a question like:
Titan emphasized that BTC’s failure to close below a key trend line known as Tenkan-sen is a harbinger of a deeper correction. “If the breakout is confirmed, we could approach $66,200 again, which could be a local bottom,” he said. Titan had also stated in its previous analysis that the $71,300 level is an important resistance point that should turn into a support level.
$200 million long position was liquidated
During its decline, Bitcoin briefly surpassed $68,000, negating a $200 million long position. According to the data, the recovery after this decline remained quite modest, causing further downward predictions on the BTC price. Popular trader Credible Crypto noted that the area between $65,000 and $69,000 is the “forced bounce zone” and emphasized that this week’s trip to all-time highs could be an upward divergence. “Now, we’ll see if we can see that bounce, and then we can move forward,” he said, warning of a “bigger correction.”
Other traders showed more faith in the market reversal. Alan Tardigrade noted that Bitcoin’s pullback to the Fibonacci 0.618 level is a common support point for a healthy correction. “If this level continues to hold BTC, we could see other impulsive moves,” he said. Trading sources also agreed about the risk of increased volatility in markets during election week. Additionally, it should not be forgotten that the decision of the Federal Reserve regarding interest rates will be announced this week.
QCP Capital also made a statement
Trading firm QCP Capital said, “We expect Bitcoin to surpass $69,000 on Friday. However, we see that there continues to be significant interest in the markets. “The open positions of total BTC futures and BTC options remained at $40.65 billion and $25.3 billion, respectively, an increase of 24.20% and 36.76%, respectively, compared to the beginning of October,” he said. He also added:
The options market values 7-day assumed volatility for BTC at 74.4%, indicating a significant risk premium compared to the previous 7-day realized volatility of 41.4%.
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