Will Bitcoin Dumping Continue? This Analyst Thinks So, Here's Why

bitcoin is consolidating, fighting for profits and watching the price action on the daily chart. Even with the rejection of lower prices, the currency has yet to decisively reverse the June 24 losses.

Should bitcoin traders prepare for further losses?

In light of this, an analyst at x x.com/AxelAdlerJr/status/1806591407630479771″ target=”_blank” rel=”nofollow”>think There could be more losses in the coming days. In a post on

According to the bitcoin Net Taker Oscillator indicator, the reading is -1.5%. At this level, the same point is seen when prices spiked to $70,000 in November 2021 before falling sharply throughout 2022.

bitcoin is trending toward a near-all-time high, up roughly 20% from $73,800 printed in mid-March 2024. Although the Q1 2024 uptrend defines the current formation, prices are retesting key support levels located between $56,500 and $60,000.

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If deeper losses were to occur, as projected by the analyst, btc could plummet to $50,000. This development would automatically disqualify the narrative of short squeeze in some quarters.

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To add to the downward pressure, the analyst also x.com/AxelAdlerJr/status/1806595932848287823″ target=”_blank” rel=”nofollow”>collected an uptick in long liquidations, which increased to 13% as of June 27. The rise in long liquidations means that leveraged traders on major exchanges like Binance and OKX are now exiting with losses.

The analyst added that what is happening regarding the liquidation is similar to what happened in the correction of the 2019-2020 period. More long-term traders then liquidated, and within five months, btc plummeted 46%.

If the past is any guide, the same is likely to happen in the coming months. However, the analyst notes that if whales buy more than 500,000 btc, prices will stabilize and skyrocket.

Bearish sentiment grows: is it time to buy bitcoin?

Santiment data too x.com/santimentfeed/status/1806478900329119949″ target=”_blank” rel=”nofollow”>reinforces this bearish narrative. In recent weeks, the number of users and traders expecting btc to rise has plummeted across multiple social media platforms.

It is noteworthy that the bearish sentiment has been building since the bitcoin halving event and the sideways price movement since April 2024. Although traders were optimistic before the halving event on 20 April, the failure of prices to rise above $74,000 eroded confidence.

Still, the current bearish sentiment could be a contrarian indicator, especially considering the overall resistance of the bulls. Prices remain above $60,000, rejecting attempts to reach lower lows.

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Falling investor and trader confidence often accompanies lows, a situation that was observed in late June. Aggressive traders could see this as a loading opportunity, believing that btc is undervalued at spot exchange rates.

Featured image of DALLE, TradingView chart