Bitcoin (BTC) briefly broke into the $18,000 range before slightly recovering back to the $19,000 mark as the crypto market remains unstable
Bitcoin is Red
On the cryptocurrency market, Bitcoin is performing poorly for the fifth day in a row, losing over 12% of its value in a week, which caused a plunge below $19,000—a price we last saw on June 19.
Another component of the outflow and selling pressure from traders and investors who bought BTC at the local bottom of $17,600 back on June 18 was fueled by a lack of buying power, sustaining risk on the cryptocurrency market, and a lack of strong “buy” signals.
Contrary to bullish forecasts in cryptocurrency forums, technical indicators for Bitcoin indicate that the local bottom has not yet been reached and that the first cryptocurrency may yet decline lower.
A Positive Surprise
According to inflows into Bitcoin futures and funds that specialize in shorting the digital gold, the bulk of market participants are currently anticipating Bitcoin’s further retreat back to the $17,000 level. However, Bitcoin may surprise us.
A short squeeze could occur for Bitcoin traders due to the market’s extreme tilt to one side. This would result in a sharp increase in the price of Bitcoin and enormous losses for bears.
Unfortunately, for a short squeeze to occur, BTC will have to deal with enormous money inflows that will cover the majority of short orders and then trigger a chain reaction of market liquidations.
As of the time of publication, the overall volume of BTC is still at a low level, indicating that neither bulls nor bears are interested in trading the spot asset and would prefer to avoid the volatile market.
At the time of writing, Bitcoin (BTC) was trading at $19,070. Will the largest cryptocurrency recover above the $19K mark or fall back to the $18,000 range?