The cryptocurrency market is struggling to hold critical supports, including Bitcoin. Almost the entire market is currently trading in the red. However, analysts say bottoms are inevitable as shorts increase.
Bearish risk rises for Bitcoin as traders wait for $17,600
Analyzing activity on the Binance order book, on-chain analytics resource Material Indicators predicted relatively volatile price behavior, in line with the “increase in order volume and whale activity.” An additional print of the BTC/USD order book has seen additional support formation between $19,000 and $19,200. These positions later proved unreliable given the price action.
Popular trader Crypto Tony therefore remained cautiously cautious, preferring to go short during the day. “I’m not going to go up even a little bit until I see a solid break in the downtrend,” he told his Twitter followers, along with a chart:
Every little jump is often extremely bullish. I don’t think it’s a good sign..Short positions are priority right now.
Currently, $19,000 remains a highly influential price zone. This level represents the overall total cost base across investor categories.
The belief in the bottom levels of June continues
Few believed that Bitcoin’s latest macro low – the $17,600 retracement in June – would hold up, with the general consensus supporting a fresh drop. Among them was popular trader Crypto Kaleo, who argued that the market is already in the “accumulation phase”, Wyckoff-style, following the bottom. The analyst, in a new tweet:
I see more 2018 bear market fractal comparisons used for this range and I’m not really a fan of that idea. I think we’ve already seen this big crash. We are in the collecting phase. The marking will catch everyone off guard.
Does it make sense to buy Bitcoin when 50% of traders are at a loss?
50% of Bitcoin investors are currently at a loss. This means the market may be approaching bottom, as eth_whalehunter, an analyst at crypto analytics platform CryptoQuant, observed on Oct.
Analyzing Bitcoin’s accumulation behavior during the March 2020 crash, the expert said that the 40% to 50% loss percentage is a “good accumulation range,” but the 50% to 60% range is actually even better in the long run:
The higher the loss percentage, the closer we are to the bottom. Buying small amounts of BTC between 50% and 60% will be incredibly profitable in the long run.
Referring to the comments under CryptoQuant’s tweet on the analysis, which suggests that the Bitcoin loss percentage may rise even higher, eth_whalehunter stated that “the highest BTC loss percentage in 2018 and 2019 was 60%,” adding:
I’m not saying it can’t go any higher, but these are good odds. Some alternatives definitely have a better chance of outperforming BTC.
Bitcoin remains volatile?
Meanwhile, some indicators are showing that Bitcoin could be in for a lot of volatility very soon. One of them is the significant hold time in the first crypto volatility, which has recently dropped below 25, even below the Dow Jones index. Others are the CPI and PPI reports that will be released this week. As you follow on Kriptokoin.com, Bitcoin is currently trading at $19,177. This represents a 0.35% drop on the day and a 4.68% drop over the previous seven days.
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