The cryptocurrency market is experiencing a dip as Bitcoin prices retreated below $60,000. This downward trend comes amidst a notable decline in Bitcoin supply from exchanges over the past two days. Data from IntoTheBlock shows a significant 21.4% drop in large transaction volume and a 1.06% fall in daily active addresses. This indicates a decrease in overall market activity. Additionally, transactions exceeding $100,000 have witnessed an increase, rising from 8,450 to 8,797 in a single day. This suggests that while overall activity is declining, there are still large players making significant moves within the market.
Coinglass data further highlights the bearish sentiment with 55,285 traders liquidated in the past 24 hours, resulting in total liquidations of $150.06 million. Liquidations occur when traders are forced to close their positions due to insufficient funds to cover losses. This large-scale liquidation further adds to the overall downward pressure on the market.
Despite the current bearish trend, some analysts remain optimistic about Bitcoin’s long-term prospects. Crypto trader CrediBULL Crypto believes that Bitcoin could still technically push lower to his ultimate target of $53,000 to $54,000. While not entirely sure if Bitcoin will get above prior highs or fall short of them, he is looking for one of these two scenarios to play out before continuing back down to his target.
Other traders are more cautious, with crypto trader Jelle observing Bitcoin’s struggle to get back above $60,000. He emphasizes that this level is crucial for Bitcoin’s recovery. Meanwhile, trader CJ has set a loose plan for Bitcoin, assuming it does not fall to $56,000 immediately. He sees the first lows at $57,787 and predicts two possible scenarios. In a bullish scenario, Bitcoin could reclaim the local range low at $58,000, targeting $61,000-$62,000. However, if the downward trend continues, he anticipates a shorting opportunity in the $61,000-$62,000 region, aiming for a potential drop to $56,000 and possibly $54,000.
The current market dynamics are highlighting the volatility within the cryptocurrency space, as traders grapple with uncertainty and navigate fluctuating price movements. Benzinga’s upcoming Future of Digital Assets event on November 19 will provide further insights into Bitcoin’s potential as an institutional asset class.
