For nearly five days, Bitcoin (BTC), the leading cryptocurrency by market capitalization, has been in a consolidation phase. However, this phase now appears to be shifting towards a more precarious state, with BTC flashing warning signals that have affected the overall market sentiment.
Bitcoin Technical Analysis and Upcoming Levels
In a recent CoinPedia technical analysis, Bitcoin has broken through the lower boundary of its consolidation zone and has started a downward trajectory. If BTC closes a daily candle at or below the $95,000 mark, the possibility of a further 10% decline to the $86,300 level in the upcoming days is highly probable.
Currently, Bitcoin is trading above the 200 Exponential Moving Average (EMA) on the daily chart, which signifies an ongoing uptrend. However, its Relative Strength Index (RSI) has exceeded the 70 mark, indicating that the upside momentum may be limited. The RSI is a crucial technical indicator used by traders to assess whether an asset is in an overbought or oversold condition, guiding their trading decisions accordingly.
What’s Driving the Bearish Sentiment?
The recent breakdown in Bitcoin has led to the liquidation of millions of dollars in long positions, according to data from the on-chain analytics firm Coinglass. In the past four hours alone, traders have liquidated approximately $47.65 million worth of long positions, vastly overshadowing the $8.87 million liquidated in short positions. Furthermore, in the last hour, $6.65 million worth of long positions and $410,000 worth of short positions were liquidated.
This substantial liquidation of long positions in comparison to short ones suggests a resurgence of bearish sentiment in the market, which may drive Bitcoin’s price downward in the near future.
Bitcoin Recent Update and Current Price Analysis
Interestingly, this significant breakdown occurred shortly after MicroStrategy, which holds the most Bitcoin of any corporation globally, made a massive purchase of 55,000 BTC valued at $5.4 billion. Concurrently, the medical firm Semler Scientific acquired $30 million worth of BTC.
As of the latest market update, Bitcoin is trading at approximately $95,135, reflecting a 1.05% decline over the past 24 hours. During this period, there has been a remarkable 38% increase in trading volume, indicating heightened activity among traders and investors in response to the price breakdown.
The cryptocurrency market remains dynamic, with Bitcoin at the forefront. Observers are keenly watching how these technical indicators and market activities will shape the future price movements of BTC.
“`
This enriched and expanded content is structured to be SEO-friendly, with HTML headings and a more detailed analysis to increase word count while maintaining readability and relevance.
