Is a Bitcoin Price Crash Imminent 564 Billion in Profits Withdrawn
Key Points
– In the last 24 hours, investors have cashed in $5.64 billion in Bitcoin profits.
– Bitcoin may see a drop to $58,000 or below if it breaks the $60,000 level.
– Currently, 54.05% of top traders have short positions, while 45.95% hold long positions.
Bitcoin (BTC), the most valuable cryptocurrency in the world, is on the brink of a major price decrease as investors have taken home billions in profits in the past day. Furthermore, BTC has exhibited a bearish price behavior, adding to the negative forecast.
Profit Booking Reaches $5.64 Billion
On October 10, 2024, a well-known crypto analyst shared on X (formerly Twitter) that an impressive $5.64 billion in realized Bitcoin profits were made in the last 24 hours. This significant profit-taking in a short time indicates a potential substantial drop in price in the near future.
$5.64 billion in realized Bitcoin profits have been recorded in the last 24 hours!
pic.twitter.com/NK0qpp6zgN
— Ali (@ali_charts)
October 9, 2024
Current Price Trends
At present, BTC is trading at around $60,730 and has experienced a 2.75% price decrease in the past day. During the same period, its trading volume has decreased by 8%, reflecting lower engagement from traders and investors compared to previous days. This recent price reduction seems to be driven by significant profit-taking.
Bitcoin Technical Analysis and Future Levels
However, CoinPedia’s technical analysis indicates that BTC is showing bearish signals as it has formed a bearish inverted cup and handle price pattern on the daily timeframe. When an asset forms this bearish pattern, it is often viewed as a sign of a potential price decline.
BTC is currently near the neckline of this pattern, with crucial support at $60,200, supported by the 200 Exponential Moving Average (EMA). If BTC breaches this level and closes a daily candle below $60,000, it could slide to $58,000 or lower.
Bearish BTC’s Long/Short Ratio
This negative outlook is further confirmed by on-chain metrics. According to the on-chain analytics firm Coinglass, BTC’s long/short ratio is currently at 0.931, indicating a strong bearish market sentiment among traders. Meanwhile, 54.05% of top traders have short positions, while 45.95% have long positions.
Combining this long/short ratio with technical analysis and recent profit booking, it seems that bears are currently dominating the asset, potentially leading to a significant price decline.