- Bitcoin fell under US$57K as $95 million in long positions were liquidated overnight.
- Over 158K traders faced liquidation, adding to market uncertainty and potential volatility.
- Despite current challenges, recovery remains uncertain, with close monitoring advised.
Bitcoin has dropped below US$57K (AU$84.75K) overnight as US$95 million (AU$141 million) in long positions have been liquidated. Data from Coinglass shows that in the past 24 hours over 158K traders have been liquidated.
So, is this dip over and will we see new highs soon or, is there more pain to come? While no one knows the answer to that for sure, we can look at what some of the leading analysts and voices in the space think.
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Chief HODLer Carl ₿ Menger is reminded of the “good old days” by the Bitcoin dip, which is now down almost 20% in a month. He called this a “proper dip” saying many couldn’t stomach the downturn and sold while others bought the dip.
Market Pullback Nearly Matches Average Depth, Exceeds Typical Duration
Analyst Rekt Capital points to a delayed Bitcoin breakout because the June downtrend failed to establish itself as new support upon retesting. However, he says this trendline remains key for observing any potential shifts in the trend moving forward.
According to his analysis, the pullback is close to average in terms of depth and above average in terms of duration.
Still, that doesn’t mean we are ready for a rebound just yet – according to engineer, founder, and analyst Willy Woo, who has 1.1 million followers on X and is no stranger to the scene.
Woo says “miners are still bleeding out, writhing in pain”, meaning that until the situation for miners improves, indicating greater overall market health and profitability, a market reversal might not be imminent.
200-Day EMA Test Could Signal Entry Point Amid Expected Volatility
According to Altcoin Sherpa, the market is approaching a critical point as it tests the 200-day EMA for the first time in months, coinciding with the range low.
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This scenario suggests a potential bounce to around US$56k (AU$83K), with expectations of significant volatility. This juncture could serve as a potential entry point for investors, though Sherpa says it remains uncertain if this marks the absolute bottom of the market trend.
Sherpa added that the upcoming days are crucial for market trends.
It’s quite common for the 200d EMA to get lost for a bit so don’t freak out if this happens now. Price can trade below it and still be bullish later on. But you have to keep your eyes peeled overall and watch low time frames.
Altcoin Sherpa
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