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After another strong play for its all-time high in the past week, the price of Bitcoin has struggled to build on its recent bullish momentum. Over the last few days, the premier cryptocurrency has been specifically slow and lethargic.
On Friday, June 20, the Bitcoin price took a severe hit — together with the rest of the crypto market — and fell briefly beneath the $103,000 mark. However, the latest market data suggests that the price of BTC might enjoy some stability after the recent round of long liquidations.
BTC Gearing For A Run Of ‘Healthier Price Action’: Analyst
In a Quicktake post on the CryptoQuant platform, on-chain analyst Amr Taha explained the dynamics between the Bitcoin price and its recent long liquidation event. According to the online pundit, the market leader could be preparing for more stable price action over the next few weeks.
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Taha revealed that the critical $103,000 liquidation cluster, which held a large volume of overleveraged long positions on Binance, has been cleared off. This cascade of long liquidations came after the price of Bitcoin plunged toward the $102,500 level on Friday evening.
According to data from CryptoQuant, the price decline caused the long liquidations on Binance, the world’s largest exchange by trading volume, to exceed $160 million. The on-chain analyst noted that this long liquidation event also coincided with a major change in the Bitcoin Net Taker Volume on the cryptocurrency exchange.
Taha highlighted that the Net Taker Volume has moved deep into the negative territory, falling to nearly -$100 million in the past day. As observed in the chart below, this latest plunge marks the third time the Net taker Volume has fallen to this level in the month of June.
According to Taha, the change in this metric suggests that aggressive selling outweighed buying activity during the liquidation event. The on-chain analyst outlines two possible reasons for this trend, including that long positions were forced to close, pushing sell orders into the market as the Bitcoin price fell below $103,000.
Taha added that some sections of Bitcoin retail traders might have pushed the panic button and filled new sell orders in fear of further losses. In the end, the crypto analyst concluded that the combination of long liquidations and extremely negative Net Taker Volume might not be completely bad for the flagship cryptocurrency.
Taha said:
While such events often feel devastating in the moment, they lay the groundwork for healthier price action. Given these dynamics, the path of least resistance may now shift upward as Bitcoin stabilizes above key support levels with reduced leverage overhead.
Bitcoin Price At A Glance
As of this writing, the price of BTC stands at around $103,450, reflecting an over 1% decline in the past 24 hours.
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Featured image from iStock, chart from TradingView
Credit: Source link
