– Bitcoin price’s horizontal consolidation is likely exhausted as the king of cryptocurrency leans south.
– BTC could make a 10% drop to the 61.8% Fibonacci level at $47,445 as bears gain ground.
– The bearish thesis will be invalidated if the price records a new local top above the $52,985 range high.
Bitcoin (BTC) price has been trading within a range for the past several days without showing any directional bias.The impasse seems to have broken, however, with the king of cryptocurrency now leaning south.
Also Read:
Bitcoin price consolidation could precipitate a fall as US markets remember President Washington
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money.This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens.If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents.To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand.The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies.
Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin’s market capitalization to the total market capitalization of all cryptocurrencies combined.
It provides a clear picture of Bitcoin’s interest among investors.A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin.A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Almost $150 million Bitcoin longs liquidated
Bitcoin (BTC) price slipped almost 1.30% on Tuesday, liquidating $158.79 million in long positions against $52.37 million in short positions.
BTC liquidations chart
Liquidations in the cryptocurrency space occur when traders’ positions are forcibly closed as a consequence of their margin accounts no longer being able to support their open positions.
It follows a drop in the asset’s price or shortage in sufficient margin to meet the maintenance requirements.
With a combined liquidation of over $210 million, relative to Monday’s $142 million, the surge in liquidations points to enhanced trading activity as well as volatility within the crypto arena.
Nevertheless, Bitcoin price has been in a lull for the past few days, consolidating on the back of unstable inflows into spot Bitcoin exchange-traded funds (ETFs).
JUST IN: Last week had the largest weekly inflows into— Bitcoin Magazine (@BitcoinMagazine)
[#Bitcoin]ETFs on record at $2.45 BILLION [pic.twitter.com/BSPfRs6Utq] [February 19, 2024]
Bitcoin price outlook as BTC longs go underwater
Bitcoin price has leaned south, with the Relative Strength Index (RSI) suggesting the fall could only be beginning as BTC is overbought.If this momentum indicator slips below the 70 level, it would signify that BTC is ripe for selling, instigating a sell-off.
The Awesome Oscillator (AO) is also showing a large red histogram bar, suggesting that the bears are establishing a presence in the BTC market.
The ensuing seller momentum could send Bitcoin price south, with a forecasted 10% fall to test the supply zone turned bullish breaker between $45,556 and $46,691.
A break and close below the midline of this order block at $46,166 would confirm the continuation of the downtrend.
Nevertheless, if this order block holds as support, Bitcoin price could pivot for a bounce that would see BTC market value provide a buying opportunity before the next leg north.
BTC/USDT 1-day chart
On the other hand, if BTC bulls increase their buying pressure at current levels, Bitcoin price could push north, shattering past the upper boundary of the ascending parallel channel.
Such a directional bias would bring the $55,000 milestone into focus, or in a highly bullish case, set the pace for BTC market value to hit $60,000, levels last tested on November 21, 2021.This would constitute a 16% climb above current levels.
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