Crypto NewsAnalysisAfter Yesterday's Drop in Bitcoin, CryptoQuant Analysts Evaluate BTC: Has the Uptrend...

After Yesterday's Drop in Bitcoin, CryptoQuant Analysts Evaluate BTC: Has the Uptrend Potential Changed?

Cryptocurrency analysis company CryptoQuant spoke about the falling Bitcoin price in its latest assessment.

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CryptoQuant, a cryptocurrency analysis company, shared its views on the current state of the Bitcoin market in its latest assessment.

According to CryptoQuant, Bitcoin has experienced a sharp decline and rapid recovery in the last 24 hours, but this has also reduced its upside potential and increased the risk of short-term positioning.

In the assessment, it was announced that nearly 24 hours ago, Bitcoin faced a long squeeze, a situation where leveraged traders who risked a price increase are forced to sell their positions due to margin calls or stop-loss orders.

This caused a rapid drop in Bitcoin price, but also created a temporary oversold situation where the price was lower than its fair value.

As a result, the market bounced back and Bitcoin regained some of its losses. But this also triggered the second largest long liquidation in 2023 after FTX. Long liquidation occurs when a leveraged position is automatically closed by the exchange due to insufficient margin.

CryptoQuant noted that the funding rate, which is an indicator of the balance between long and short traders in the market, has returned to around zero, that is, there is no significant trend in either direction. The open position, which is the total value of pending contracts in the market, has also decreased, indicating less activity and liquidity.

CryptoQuant analysts have warned that smart money, which refers to institutional or experienced investors, may have made a profit by buying Bitcoin at a low price and selling it at a higher price. This may have exhausted the buying pressure and reduced Bitcoin's upside potential.

*Not investment advice.

Buradaki Yorumlardan Bildirim Al

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