Bitcoin’s rollercoaster ride seems far from over as analysts project a steep target of $58,000 amidst the current market turbulence. With long positions getting “rekt” and weekly losses approaching 10%, the crypto community is on edge, anticipating what lies ahead for BTC.
BTC/USD Faces Intense Sell-Side Pressure
Data from Cointelegraph Markets Pro and TradingView showcased that ongoing sell-side pressure has sent BTC/USD to three-week lows. As we head into what looks like a grim weekend, setting up for an equally grim weekly candle close, experts caution that Bitcoin bulls could be in for more challenges next week.
Keith Alan, co-founder of Material Indicators, highlighted this sentiment in a recent X post. Alan pointed to the gap between closing and opening levels on CME Group’s Bitcoin futures markets, stating:
“Bitcoin has entered the CME Gap, but technically, it can only be filled during TradFi trading hours,”
Understanding the CME Gap
Historically, Bitcoin price action has a tendency to “fill” these gaps post-weekend, making $58,000 a potential near-term target. Popular trader Daan Crypto Trades chimed in on this subject with a visual chart:
“We’d now make a new gap between ~$60K-$63K. Going to be an interesting week.”
Weekly Close Offers Little Relief
Alan also warned that the expected weekly close, which currently suggests BTC/USD could decline more than 8%, would not offer a lasting reprieve. He stated:
“With that in mind, there is a low probability that we see BTC price recover for the Weekly close, but if we do, I expect it to be short lived.”
Material Indicators’ proprietary trading tools suggest that BTC bulls might want to brace themselves for a potential lower low, furthering the market woes.
Volatility Is “Guaranteed”
Adding his insights, trader CrypNuevo noted that a dip to $58,000 might serve as a much-needed reset button for market sentiment. In an X thread he elaborated:
“Another thing is that this range between $72k and $60k was very present and clear in all traders’ minds. A flush to $58k will scare them enough to get rid off their position. That might be the trick the market needs.”
Monitoring resource CoinGlass further illustrates the long BTC positions’ struggle over recent days, showing nearly $200 million liquidations since Aug. 1. BTC/USD’s fall below $60,000 cut through significant buy liquidity, intensifying current market conditions.
Daan Crypto Trades also highlighted the growing volatility in a tweet alongside Binance order book data:
“Relentless down trend but a lot of orders starting to show up. Longs getting rekt, shorts getting in, dip buyers getting in. Volatility guaranteed here.”
Key Support Levels and Market Psychology
According to Cointelegraph, the vital support range for BTC at $56,000-60,000 remains a linchpin for bullish momentum. Losing this range could spell more trouble for BTC, perhaps even triggering more long position liquidations.
The psychological impact on traders is also worth noting. A rapid and steep decline often triggers panic selling and exacerbates market volatility. The relentless downtrend highlighted by Daan Crypto Trades echoes this sentiment, suggesting the market may still have turbulent waters ahead.
Final Thoughts
As Bitcoin navigates these murky waters, market participants must brace for heightened volatility and potential further declines. The next few weeks will be critical for Bitcoin, serving as a litmus test for its resilience amidst growing sell-side pressure. For further reading on Bitcoin’s historical trends and potential future price actions, check out these sell-side fundamentals and CME gap strategies.
Additional Reading
The community will undoubtedly be keeping a close eye on Bitcoin’s price action, eagerly awaiting signs of whether this plunge is a temporary setback or a more significant pivot point in the cryptocurrency’s trajectory.
I am Faisal Ahmad, a crypto expert with years of experience in the digital currency world. My blog covers everything about cryptocurrency, from market trends and investment strategies to blockchain technology and regulations. Join me for the latest insights and tips in the ever-evolving crypto space.