Bitcoin (BTC) is the largest Cryptocurrency in the market and is expected to continue its bull market after consolidating its gains. However, on June 14th, just before the daily close, Bitcoin fell 3%, below $25000, reaching a low of $24700, which is its lowest price since mid March
Bitcoin (BTC) is the largest Cryptocurrency in the market and is expected to continue its bull market after consolidating its gains. However, on June 14th, just before the daily close, Bitcoin fell 3%, below $25000, reaching a low of $24700, which is its lowest price since mid March.
In view of these developments and the growing regulatory pressure exerted by the U.S. Securities and Exchange Commission (SEC) on emerging industries, many people began to believe that BTC's recent bull market was just a fraud.
Bitcoin is on the brink of massive liquidation
Bitcoin has been facing a lot of turbulence lately, and the trouble seems unlikely to stop soon.
The latest data shows that with the imminent liquidation of more than $100 billion, Bitcoin is facing trouble, which indicates that the Cryptocurrency market may collapse again. Despite attempting to exceed its recent resistance level, Bitcoin has been struggling and may further decline and increase selling pressure.
According to the latest data provided by traders and Cryptocurrency analysts under the pseudonym of "BleedingCrypto", a total of $63.9 billion was cleared at the price level of $24200, and $52.3 billion was cleared at the price level of $21800.
The increase of selling pressure of Bitcoin may lead to further liquidation and subsequent price collapse of Cryptocurrency, thus delaying any further upward trend and leading to a return to the lower price level at the beginning of the year. This may cause fear among investors, further exacerbate short positions, and potentially lead to a vicious cycle.
However, if this is the case, it should be noted that the opposite situation may also occur, where institutional investors chase short positions to close out, leading to a surge in buying pressure and driving up Bitcoin prices.
BTC position skyrocketing
Maartun, an analyst of Cryptocurrency and the author of CryptoQuant, recently warned that the world of bitcoin is experiencing fluctuations. According to him, although the price of BTC has been consolidating sideways, the position of the Cryptocurrency has increased by $439 million.
Maartun's analysis indicates that a large amount of funds are flooding the market, which may lead to a significant increase in volatility.
Maartun pointed out that this situation is different from before, as the financing interest rate of Bitcoin is showing a downward trend, approaching neutrality. This means that bulls and bears are almost in a perfect balance, and any significant change in either direction may trigger a series of buying or selling.
Open positions refer to the total number of open positions that have not been settled in a specific market. In the case of Bitcoin, an increase in holdings usually indicates more traders entering the market, which may lead to increased volatility.
The impact of the increase in holdings on the price and market direction of the special currency is still unclear. Although the increase in open positions may indicate an increase in interest in Bitcoin and may lead to price increases, if market sentiment turns negative, it may also lead to greater volatility and price declines.
In addition, according to the latest data from Glassnode, the supply of illiquid Bitcoin continues to grow at a rate of 119000BTC per month. This indicates that Bitcoin holders are increasingly unwilling to sell or transfer their Bitcoin, resulting in Bitcoin being concentrated in wallets with little history of expenditures.
This is an important trend to watch because it shows that Bitcoin holders are still confident in the long-term potential of Cryptocurrency.
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