Bitcoin continues to face a short-term downtrend, raising concerns among investors. Key supports may prove crucial in the near future.
Current State of the Bitcoin Market
Bitcoin is in a downtrend despite bulls' attempts to keep the price above the pivotal support. Currently, the price is heading towards a crucial support and a liquidity test, potentially bringing BTC into the demand zone. Market sentiment has dropped to 30, indicating a state of fear.
Story of Major Liquidations
The crypto markets witnessed a major pullback, leading to approximately 148,643 traders being liquidated in the last 24 hours, with total liquidations reaching around $379.24 million. The BTC price hit lows, liquidating almost 100x longs made since Friday. Data from Coinglass shows significant liquidity present on both sides of the price, suggesting trader uncertainty regarding the next price action.
Possible Market Developments
Retail demand for Bitcoin is rebounding—the 30-day demand that had dropped to -21% has returned to neutral, similar to levels last seen in 2021 before the bull run. Such recoveries often precede significant price movements. Chart analysis shows BTC facing strong bearish pressure, remaining below the 50-day MA. The price might stay under pressure but could experience substantial bullish action beyond interim highs.
The overall picture for Bitcoin remains complex, with unpredictable movements. However, recovering retail demand may signal future changes in price dynamics.
