The BTC price prediction appears to be bearish as it is on the verge of breaching $108,800, a key support level. The daily chart reveals that BTC has respected this support for over a week, but with the shift in market sentiment, it now appears to be losing it.
Given the current market sentiment, traders have already begun betting on the short side, as revealed by the blockchain-based transaction tracker Onchain Lens on X (formerly Twitter).
In a post on X, it appears that a crypto whale has entered BTC short positions with 40x leverage worth $55.65 million.
This substantial bet on the short side is a red flag for BTC, as it appears to be weakening the key support level. However, this whale had previously lost $3.03 million in two BTC short trades.
This time, however, the market sentiment is weak, and the asset is at a critical level, which increases the chances of the trade going in their favor.
At press time, BTC is trading near the $108,900 mark with no major price changes in the past 24 hours. During the same period, investor and trader participation has slightly increased, resulting in an 11% growth in recorded trading volume.
According to TradingView, BTC price prediction suggests a potential correction or decline in the asset’s value.
As per the four-hour chart, BTC has been consistently taking support at the $108,800 level over the past week, indicating that the price is failing to rally and is struggling to hold this support.
Based on recent price action and historical patterns, if the BTC price breaches the key support level of $108,800, the BTC price prediction suggests that Bitcoin could drop by 2% and reach the $106,500 level.
On the other hand, if BTC maintains itself above the $108,800 level and breaches $110,000, the BTC price prediction suggests it could hit a new high in the future.
As of now, BTC’s Relative Strength Index (RSI) stands at 48, indicating that the asset is neither in overbought nor oversold territory.
However, traders’ and investors’ interest could push the RSI higher if buying momentum picks up, signaling a potential shift toward a bullish trend. Conversely, a drop in interest or increased selling pressure could push the RSI lower, indicating a potential bearish move ahead.
With the bearish price action, millions worth of long positions are on the verge of liquidation, as revealed by the on-chain analytics tool Coinglass.
In fact, data shows that traders are over-leveraged at $105,807 on the lower side (support) and $112,287 on the upper side (resistance). Meanwhile, at these levels, traders have built $5.30 billion worth of long positions and $4.44 billion worth of short positions over the past seven days.
These levels act as a strong support and resistance on a higher time frame. However, at the $108,800 level, traders have built $288 million worth of long positions, which could be liquidated if the price falls to this level.
Meanwhile, industry giant Strategy (formerly MicroStrategy) bought 4,020 BTC worth $427 million at an average price of $106,237 last week. This suggests that if the BTC price falls, it might present a buying opportunity.
With this recent purchase, Strategy’s total holdings have now soared to 580,250 BTC, worth $63.73 billion, with an unrealized profit of over $23.12 billion.
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