BTC Is Falling, How Long Before It Heads For A New ATH?

• 1 The long liquidations was higher which was amounted to $47.63 Million, compared to short liquidations of $22.47 Million.
• 2 RSI suggests a potential downtrend, with the MACD issuing a sell signal, reinforcing the bearish outlook.

Bitcoin (BTC), known to the world as the first successful decentralized crypto ever created, which uses peer-to-peer technology and a blockchain. The pseudonymous developer Satoshi Nakamoto’s 2009 innovation’s total supply was capped at 21 Million.

As per the Volume/market cap of 24 hours, its liquidity is critically low at 2.82% signifying a lack of momentum. But BTC price volatility is very low, which exhibits stability in the trading crypto price, as per Santiment.

BTC Price Volatility | Source: Santiment.com

The market cap dominance of the asset is massive, resulting in 54.45% in the overall crypto realm, making it the most prominent cryptocurrency in the global crypto market. 

The Bitcoin market cap has been trading with not so much change in it, over the last 24 hours, while the value of the crypto traded volume has advanced by 105%, resulting in a traded value of $36.480 Billion.

Bitcoin Crypto Derivatives Overview

In the past 24 hours, the volume of derivatives has seen a remarkable increase of 140%, even as the volume of options has decreased.

BTC Futures Open Interest | Source: Coinglass.com

Bitcoin’s open interest has remained relatively unchanged, showing a slight decrease of -1.19% over the last 24 hours. Concurrently, the options volume has declined by 39.7%, bringing it to a total value of $625.95 Million.

BTC Total Liquidations Chart | Source: Coinglass

Furthermore, the long liquidations was amounted to $47.63 Million, compared to short liquidations of $22.47 Million. This indicates that sellers’ dominance is exerting a strong influence on the crypto’s price dynamics.

What BTC Crypto Technical Analysis Exhibits on Price Chart?

Bitcoin’s price trajectory has recently taken a downward turn, by breaching the key support levels, which led to the formation of a rising wedge pattern. This bearish pattern emerged as the price stabilized at the higher levels, which followed a period of steady gains.

However, the latest market structure shows a clear breakdown from the wedge in 4-H timeframe, marked by a series of strong bearish candles and the formation of a new lower low structure, indicating that investor sentiments are turning negative.

This pattern suggests an increased probability of further declines in Bitcoin’s price in the coming sessions, this signaled a possibility for a continued downtrend.

On the technical front, the 50-day and 200-day EMAs on the 4-hour chart of Bitcoin have exhibited a bullish golden crossover. Despite this, the price of Bitcoin has fallen beneath the 200-day EMA, which is a sign that the bullish trend is waning.

The bearish perspective is further supported by the MACD indicator, which has been showing a bearish crossover with both lines trending downwards.

Moreover, the RSI shows a decrease in bullish momentum and a rise in bearish pressure, with a current reading of 41.44. This highlights oversold market conditions, which is corroborated by the RSI’s descent below the 14-day Simple Moving Average.

Summary

Bitcoin’s liquidity is critically low at 2.82%, indicating stability, but also a lack of momentum. It dominates the crypto market with a 54.45% market cap. 

Despite a 105% surge in traded volume, Bitcoin’s price is declining, forming a bearish rising wedge pattern. Technical indicators like the golden crossover and RSI suggest a potential downtrend, with the MACD issuing a sell signal, reinforcing the bearish outlook.

Disclaimer

In this article, the views, and opinions stated by the author, or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.