- Bitcoin could remain bullish until it trades above $45,000.
- If BTC falls to the $54,700 level, nearly $2 billion of long positions will be liquidated.
After a massive price drop on August 5, the market is now recovering. Major assets such as Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) have seen significant price gains over the past two days.
Amid this continued price recovery, Julio Moreno, head of research at CryptoQuant, indicated that Bitcoin is sending a bearish signal.
Bitcoin Is Giving a Bearish Signal?
In a post on X (formerly Twitter), Julio indicated that the bull-bear market cycle indicator has entered a bearish zone. This is the first time since January 2023 that this indicator has given a bearish signal.
According to historical data, this same indicator showed bearish signs during the stock market crash of March 2020 and May 2021.
Retweeting Julio’s post, Ki Young Ju, the founder and CEO of CryptoQuant, shared on X that Bitcoin could remain bullish until it trades above $45,000. In a post, he noted:
“Some indicators are showing bearish signals. However, they could still recover with a bounce, so we need to monitor if the level stays at this level for a week or two. If it lasts longer, the risk of a bear market increases and the recovery could be difficult if it lasts more than a month.”
At press time, BTC was trading above the $57,200 level and saw a price increase of over 4% over the past 24 hours. Despite this impressive price increase, trading volume dropped by 38% over the same period.
This massive drop in trading volume indicates fear among traders and investors.
Bitcoin Technical Analysis
According to technical analysis by experts, BTC looks bullish and could surge to nearly $60,000 in the coming days.
$60,000 will be the crucial level for BTC as it faces resistance from the trendline and the 200 exponential moving average (EMA).
Source: TradingView
However, if BTC manages to break through this resistance level, there is a high chance that we will see a massive surge up to $70,000 in the coming days.
Is Your Wallet Green? Check Out the BTC Profit Calculator
Currently, the major liquidation level is near $54,700 on the lower side and if sentiment changes and it falls to this level, nearly $2 billion of long positions will be liquidated.
Source: Coinglass
While on the higher side, the major liquidation level is near $58,000. If sentiment remains unchanged and BTC rises to this level, nearly $500 million worth of short positions will be liquidated.
