Is Bitcoin’s bottom in? $600M in liquidations stirs debate

• Bitcoin struggled to maintain the $65,000 level amidst market volatility.
• Analysts provided conflicting views on whether Bitcoin has reached its lowest point.

Despite Bitcoin’s [BTC] persistent attempts to stabilize its price above the $64,000 threshold, the premier cryptocurrency has recently recorded a decline.

Its price fell by approximately 0.6% in the past 24 hours to a current valuation of $65,619. 

This ongoing downward trend, which has seen Bitcoin lose nearly 5% over the past two weeks, is causing concern among investors and traders alike.

What are the experts saying?

Amid these fluctuations, notable crypto analysts are weighing in with varied perspectives.

CrediBULL Crypto, a renowned figure in the digital currency space, shared a cautiously optimistic view on X (formerly Twitter), suggesting that Bitcoin might have reached its low point. He elaborated, 

“There’s a chance our $BTC bottom is in with this SFP…Yes, we can still technically go lower…but it would not surprise me to see that zone front run.” 

He urged caution, emphasizing the need for a clear bullish signal or ‘impulse’ before making significant trading decisions.

Source: CrediBULL Crypto/X

Conversely, Skew, another respected trader, highlighted the recent activity on major exchanges as indicative of the market’s sentiment. 

He pointed out that while there was some buying on Coinbase and Bitfinex, Binance continued to experience sell pressure. He noted,

“I think $66K – $67K is the key area to gauge if there’s ongoing absorption, else lower prices will come with price bleeding.” 

He also mentioned that the presence of spot premiums and low funding rates could be a positive sign, indicating potential for a market recovery.

Fundamental outlook on Bitcoin

This period of uncertainty is reflected in the substantial liquidations occurring within the Bitcoin market.

Data from Coinglass revealed that in the past 24 hours alone, about 173,662 traders were liquidated, leading to a total of $456.43 million in liquidations, with Bitcoin traders accounting for $70.24 million of this amount.

Source: Coinglass

Despite these challenges, there was a silver lining in the form of increased new user activity on the Bitcoin network.

AMBCrypto’s analysis of Glassnode’s data showed a surge in the number of new Bitcoin addresses, climbing from below 550,000 in April to over 700,000 at press time.

Source: Glassnode

This uptick in new addresses could signify a growing interest from new entrants or a return of dormant users, potentially stabilizing the market and fostering a recovery phase.

Adding to the cautiously optimistic outlook, AMBCrypto cited CryptoQuant analyst Ki Young Ju, who remained bullish on Bitcoin’s long-term prospects.

Read Bitcoin’s [BTC] Price Prediction 2024-25

He believed that the average entry price for Bitcoin traders remained around $47,000, suggesting that most are still in profit despite the recent pullback from peak prices. 

This resilience among Bitcoin holders, coupled with the potential accumulation at lower price levels, could set the stage for a future rally, underscoring the complex dynamics at play in the cryptocurrency market.