Bitcoin Continues Going Sideways But This Indicator Gives Bulls Hope

Author: Khyathi Dalal | August 21, 2024 10:57am

Bitcoin‘s (CRYPTO: BTC) extended sideways range has traders wondering when the next bullish move will come, but key indicators point to little further downside risk.

What Happened: Pseudonymous trader Doctor Profit thinks that despite the $9 billion in short liquidations near $68,000 and the lowest funding rates since October 2023, the market is shifting towards a healthier state. He points out more traders are short than long, which he sees as a sign of an impending uptrend and reversal.

"The fools who shorted at the bottom are paying the price in the form of their own liquidity," he warned.

He suggests buying on dips and accumulating more, as he believes the next move is to the upside.

Another crypto trader also sees Bitcoin trading in a sideways range but expects volatility between $61,900 and $56,200. A "decisive break above or below these ranges” is needed for significant movement, the trader stated.

"If Bitcoin breaks below $58,650, which is the intraday low, then this could signal another support level failure, potentially leading to further downward movement," he concluded.

Also Read: Bitcoin Seesaws Between $59,000 And $60,000, But Consolidation Could Be Over Soon: CryptoQuant

Coinglass data shows the long to short ratio over the past 24 hours at 0.9775. A ratio below 1 signifies there are more short positions in the market. Short liquidations are at their lowest since the end of June at just over $3 million.

Despite an 11% drop in the past month, Bitcoin's low short liquidations indicate that traders are increasingly reluctant to go short at these prices.

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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• Erratic Bitcoin, Ethereum Price Action: What Does Technical Analysis Say About This Market?

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Posted In: $BTC