Bitcoin Price Under Pressure Despite CZ’s Optimistic Halving Prediction
Binance CEO Chanpeng Zhao recently made a statement predicting that Bitcoin’s price could surpass its previous all-time high of $61,000 by 2024. However, recent events in the derivatives market suggest a bearish short-term outlook. BTC bulls have experienced losses for six consecutive days, with over $25 million worth of LONG positions liquidated on Wednesday alone. The decline in the global crypto market cap also indicates that investors are exiting the market rather than buying more BTC to defend their positions. If this trend continues, BTC spot market prices could drop closer to $25,000 in the coming days.
Bitcoin Bears Have Seized Control of the Market
Although Bitcoin initially showed positive momentum by attempting to break the $28,000 resistance, recent derivatives market data reveals a shift in favor of bears due to the Israel-Palestine crisis. Between October 7 and 11, BTC Long position holders suffered more losses than short traders, with over $55 million worth of long positions liquidated during that period. This indicates that bears have gained the upper hand in five consecutive trading days since the geopolitical crisis began. It remains to be seen whether highly-leveraged Long traders will increase buying pressure to prevent further price declines.
BTC Price Prediction: Losing $25,000 Could Trigger Larger Losses
Based on current market data insights, Bitcoin’s price is likely to drop towards $25,000 in the near future. However, the In/Out of the Money metric provides a less pessimistic outlook as it shows a major support cluster of holders who bought Bitcoin around the $26,300 level. If these holders continue to hold steady, further losses could be averted. However, if bears break through this support level, BTC could rapidly drop towards $25,000. On the upside, if Bitcoin can reclaim $30,000, the bulls may regain control. But if the resistance cluster cannot hold, the psychological resistance at $30,000 could be the next obstacle.
Hot Take: Bitcoin Faces Short-Term Pressure Amid Bullish Predictions
While Binance CEO Chanpeng Zhao remains optimistic about Bitcoin’s long-term prospects and predicts a new all-time high by 2024, recent events in the derivatives market and geopolitical tensions have put short-term pressure on BTC’s price. Derivatives data shows that bears have gained control of the market, resulting in losses for BTC bulls and liquidation of long positions. Additionally, the decline in the global crypto market cap suggests investor exodus. If this trend continues, BTC spot market prices could drop further. However, there is still hope as major support clusters and potential resistance levels may influence future price movements.
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