Bitcoin Rollercoaster Causes Losses for Leveraged Traders
This Monday, the crypto market experienced significant price volatility, resulting in approximately $400 million in liquidations in crypto futures markets. Both leveraged long and short positions were affected by this steep volatility.
Expect a Firm Support Zone
Following the correction on Monday, a trader advised its users to watch out for a deeper correction that could find support between $37,150 and $38,360. This support zone is backed by 1.52 million addresses holding 534,000 BTC.
Resistance Walls to Watch Out For
In the event of a reversal, Bitcoin may face resistance at two levels: $43,850 and $46,400. These resistance walls could potentially hinder Bitcoin’s upward trajectory.
CryptoPotato’s Analysis
CryptoPotato also reported that Bitcoin needs to hold the $40,000 mark to trigger a rebound and potentially reach the next significant resistance level at $48,000. However, if there is a bearish breakout, Bitcoin could drop further to $38,000 or even $31,000 in the worst-case scenario.
Potential Retest of $30k?
Bitcoin recently experienced a 10% price drop before rebounding from the $40,000 support level. Analysts and traders are closely monitoring key support levels to determine Bitcoin’s future price movement.
Interestingly, there has been a surge in money inflow into Bitcoin, reaching levels unseen since the last cycle’s peak. The Money Flow Index reaching 91.57 suggests sustained momentum that could drive Bitcoin to higher levels.
Furthermore, on-chain data indicates that Bitcoin’s available supply is at historic lows, reflecting increased accumulation by HODLers, particularly institutional investors.
Institutional investors have shown a strong preference for Bitcoin, with BTC holdings doubling in the first three quarters of 2023. This increased interest is driven by positive market sentiment, expectations of regulatory advancements, and the potential approval of a Bitcoin ETF.
Hot Take: Bitcoin’s Rollercoaster Ride Continues
The recent rollercoaster ride in the crypto market has inflicted pain on leveraged traders, with significant liquidations occurring. Traders are advised to be cautious and watch for support and resistance levels as Bitcoin’s price continues to fluctuate. Despite the volatility, there are signs of sustained momentum and increased institutional interest in Bitcoin, which could potentially drive its price higher. However, it remains crucial to closely monitor market conditions and key levels to navigate this unpredictable landscape.
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