A trader believes bitcoin will fall a bit first and then pick up speed
Bitcoin (BTC) fell to its lowest level in a fortnight on 23 March on fears that demand is weakening among bulls.
Data from Cointelegraph Markets and Tradingview shows that the BTC/USD pair has hit local lows of US$53,125 on Bitstamp.
Tuesday’s decline has increased the chance of a Bitcoin Revolution test of the US$50,000 level. However, buyer support on the exchanges is looking increasingly shaky.
Data from Binance’s order book confirms support at US$53,000. If this crumbles, only definitive demand at US$46,000 remains to halt the decline.
„I expect the previous lows in BTC to be hit and only then do we see a strong bounce,“ summarised trader Crypto Ed. He predicted a drop to below US$53,000.
„This bull run is not over yet. I am ready to buy the decline,“ said Ki Young Ju, the CEO of on-chain analytics service CryptoQuant. With that, he expressed some optimism.
„But I am patiently waiting for the supply/demand indicators on the chain to show buy signals.
Ki pointed to the high selling pressure on spot exchanges, which kept the uptrend in check. However, this was indicative of the general sentiment among traders on the day, most of whom classified the recent price action as a standard consolidation move rather than a capitulation.
The Hodler behaviour proves them right. More BTC has been taken off exchanges in the last few days than in the last six weeks.
24-hour liquidations at nearly $2bn
However, as Cointelegraph reported, other on-chain indicators suggest that Bitcoin may be at least halfway through its bull run.
Not all traders were prepared for the magnitude of the decline overnight. This is shown by the liquidated long positions of $1.38 billion out of a total of $1.7 billion.
In 2021, many daring predictions were made for cryptocurrencies. Leverage traders in particular triggered too many liquidations, as data from Bybt confirms.