Bitcoin Liquidated $US1 Billion: The Start of a Bigger Trend?
Looking at the current state of being on Bitcoin in Week 34 of 2023
Price Progression Reveals Bitcoin Cards
In July and August, during one of Bitcoin's lowest volatility periods in recent memory, over $US1 Billion worth of long positions were accumulated. These same positions have been wiped out in a single late-night trading session on August 17, 2023. So, what's next for Bitcoin?
By the latter half of Week 33, Bitcoin had dropped by a significant 17%, effortlessly breaking its major support at $US28,000. This led to the next critical support level of $US24,400 across derivatives platforms.
Since then Bitcoin has entered into a consolidation range as the market awaits Bitcoins next move. While some interpret this pattern as indicating a bearish trend, there's also a plausible case for a bullish outlook.
On a shorter timeframe, Bitcoin appears neutral. A key observation provides crucial levels to look out for that can help determine whether Bitcoin is bearish, or bullish for the upcoming period.
As seen in the picture below, Bitcoin is currently in its most neutral state. The green box indicates a local resistance zone, while the red box symbolizes the support zone.
Should Bitcoin dip below the red zone, we might see further declines. Conversely, if Bitcoin manages to trade above the green zone, then a more bullish sentiment might reveal itself as the US$24,400 low on the derivatives exchanges might widely be considered as the low and end of a longstanding corrective period. For now, both bullish and bearish outcomes seem equally likely.
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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.
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