Bitcoin’s sustainable model no longer exists as traders lose $200 million betting on reversal
Following almost two weeks of consolidation, Bitcoin has finally dropped below the ascending channel that has been forming since January 2022, according to TradingView. The channel was previously acting as a guideline for the price.
As the daily chart for the first cryptocurrency suggests, the ascending channel has played out correctly for Bitcoin price at least five times, allowing traders to correctly highlight local resistance and support points and transact based on it.
The drop below the channel may in fact become a catalyst for further downward movement for the digital gold as the lower border of the formation had a concentration of large orders suggesting some traders were actively betting on the reversal on the point.
Additional selling pressure may appear due to the concentration of “sell” orders below the aforementioned support line. Further decline will be market driven to limit sell orders from those who opened their positions directly on the support line.
The high liquidation volume speaks in favor of the theory as $200 million worth of longs were liquidated in the last 24 hours. Such a large volume of liquidated orders suggests that traders were actively betting on the reversal around $39,000.
The drop below $40,000 should also be seen as a strong psychological loss, which may affect BTC’s price performance. Several experts have noted that the market could enter a full bear cycle if Bitcoin suddenly, finally, enters the $30,000 range, as no major support has formed around it yet.
At press time, Bitcoin is trading around the price of $38,500 and not giving any reversal signs or signals.
