Bitcoin is in danger of losing $25,000 as the bears rally.
Bitcoin (BTC) fell below $27,000 on Wednesday, with the global crypto market capitalization down 2 percent. Analysis on the chain examines the short-term benefits of Binance CEO Changpeng Zhao's recent bullish statements as the Middle East escalates.
According to a recent statement by Binance CEO Chanpeng Zhao (CZ), the price of Bitcoin could surpass its all-time high of $61,000 by 2024. However, recent macro events and BTC derivatives market data are conflicting.
Bitcoin price under pressure despite CZ's optimistic half-term forecast
On Wednesday, October 11, Binance added the bitcoin halving countdown to the exchange's homepage. In making the announcement, CEO Chanpeng Zhao highlighted BTC's historical cycle, which reached new all-time highs after 3 halvings in 2012, 2016 and 2020 respectively.
While Bitcoin Maxis broadly embraces CZ's bullishness, recent events in the primary market paint a short-term picture. According to data compiled by Coinglass, BTC bulls took in $25 million on Wednesday, extending their losing streak to 6 days.
A Liquidity Heat Map provides an overview of the total crypto derivatives market positions that have closed or closed during a given time period.
The chart above shows that BTC dominates the crypto market losses with long positions worth more than $25 (price increase in BTC) released only on Wednesday.
The corresponding 2% drop in global crypto market prices suggests that investors are exiting the market rather than buying more BTC to hedge their positions.
If this situation continues, BTC spot market prices may approach $25,000 in the coming days.
Bitcoin bears dominate the market
Bitcoin made a positive start to the month, making several attempts to break the desired $28,000 resistance. In particular, Bitcoin Dominance (BTC.D) holds a 4-month high of 51% in the process.
However, the spread market data shows that the Israeli-Palestinian crisis has tilted the trend towards the bears. Between October 7th and 11th, BTC long holders suffered more losses than short traders.
More than $55 million worth of long positions were liquidated at this time.
The total liquidity measure weighs the total value of longs closed against shorts in a given time frame. As seen above, bears have dominated the 5 consecutive trading days since the geopolitical crisis between Israel and Palestine.
It remains to be seen if highly leveraged long traders will pile on the buying pressure to avoid further Bitcoin price declines by taking positions below the price.
BTC Price Prediction: Losing $25,000 can result in huge losses.
Based on the current understanding of the market data, the price of Bitcoin seems set to drop to the $25,000 level in the future. However, In/Out of the Money, which shows the entry price distribution of current BTC holders, provides a less pessimistic view.
This shows that holders of a major support set bought Bitcoin around $26,300.
As shown below, 1.95 million addresses bought 811,310 BTC at a maximum price of $26,695. If you HODL, you can avoid further losses.
But if the bears breach that support level, BTC could quickly drop to $25,000.
On the upside, the bulls could regain control if the price of Bitcoin can regain $30,000. But in that case, 2.5 million addresses bought 1.06 million BTC at an average price of $28,300.
If you book profits early, you can make a quick depression in the price of Bitcoin.
But if the resistance cluster fails to hold, the psychological resistance at $30,000 can be the next stop.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult with a professional before making any financial decisions.
