Bitcoin
is
consolidating,
struggling
for
gains,
and
looking
at
price
action
in
the
daily
chart.
Even
with
the
rejection
of
lower
prices,
the
coin
has
yet
to
follow
through,
decisively
reversing
losses
of
June
24.

Should
Bitcoin
Traders
Brace
For
More
Losses?

In
light
of
this,
one
analyst
on
X

thinks

there
could
be
more
losses
in
the
coming
days.
Posting
on
X,
the
on-chain
analyst
highlighted
a
worrying
trend:
Even
amid
the
Bitcoin
trading
community’s
optimism,
sellers
are
relentlessly
stacking
up
more
short
orders.

 

According
to
the
Bitcoin
Net
Taker
Oscillator
indicator,
the
reading
is
-1.5%.
At
this
level,
it
is
at
the
same
point
observed
when
prices
rocketed
to
as
high
as
$70,000
in
November
2021
before
dumping
sharply
throughout
2022.

Bitcoin
is
trending
at
a
near
all-time
high,
roughly
20%
from
$73,800
printed
in
mid-March
2024.
Although
the
uptrend
of
Q1
2024
defines
the
current
formation,
prices
are
retesting
key
support
levels
stacked
between
$56,500
and
$60,000.

If
there
are
deeper
losses,
as
the
analyst
projects,
BTC
could
crash,
reaching
$50,000.
This
development
would
automatically
disqualify
the
short-squeeze
narrative
in
some
quarters.

Related
Reading

Compounding
the
bearish
pressure,
the
analyst
also

picked
out

an
uptick
in
long
liquidations,
rising
to
13%
as
of
June
27.
The
upswing
in
long
liquidations
means
that
leveraged
traders
across
leading
exchanges
like
Binance
and

 

OKX
are
now
exiting
at
a
loss.

The
analyst
added
that
what’s
happening
regarding
liquidation
is
similar
to
events
in
the
2019-2020
correction.
Then,
more
long
traders
were
liquidated,
and
within
five
months,
BTC
crashed
by
46%.

If
the
past
guides,
then
it
is
likely
that
the
same
could
unfold
in
the
coming
months.
However,
the
analyst
notes
that
if
whales
buy
over
500,000
BTC,
prices
will
stabilize
and
shoot
higher.

Bearish
Sentiment
Building
Up:
Time
To
Buy
Bitcoin?

Santiment
data
also

reinforces

this
bearish
narrative.
In
recent
weeks,
the
number
of
users
and
traders
expecting
BTC
to
edge
higher
has
been
plunging
across
multiple
social
media
platforms.

Of
note,
bearish
sentiment
has
been
building
up
since
the
Bitcoin
halving
event
and
the
sideways
movement
of
prices
since
April
2024.
Though
traders
were
optimistic
ahead
of
the
Halving
event
on
April
20,
the
failure
of
prices
to
breach
$74,000
eroded
confidence.

 

Even
so,
the
current
bearish
sentiment
could
be
a
contrarian
indicator,
especially
considering
the
general
resilience
of
bulls.
Prices
remain
above
$60,000,
rejecting
attempts
for
lower
lows.

Related
Reading

Often,
declining
trader
and
investor
confidence
accompany
bottoms,
a
situation
seen
as
of
late
June.
Aggressive
traders
might
view
this
as
a
loading
opportunity,
believing
BTC
is
undervalued
at
spot
rates.

Feature
image
from
DALLE,
chart
from
TradingView

Go to Source
Author: Dalmas Ngetich

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