Are Bitcoin Bears Laying the Perfect Bull Trap? Analyst Highlights Next Price Point of BTC Liquidations
In a series of tweets, esteemed analyst Credible Crypto provides a comprehensive overview of the present state of Bitcoin’s ($BTC) price action.
For those seeking clarity in the traditional BTC chart, Credible Crypto emphasizes the significance of the low-timeframe structure.
According to the analyst, the potential for a continued downward movement aimed at flushing out leveraged long positions exists until a shift in this structure occurs.
Despite this, Credible Crypto reassures the community that such a move would be a deviation to extract liquidity, analogous to the earlier deviation above range highs that preceded the recent selloff. Importantly, this deviation is asserted not to disrupt the overall bullish outlook on the higher timeframes.
Credible Crypto introduces a critical juncture, highlighting the necessity for a robust reaction off the midrange. The analyst expresses concern over the lackluster response observed after the last test. In providing additional context, attention is drawn to the confluence of the higher timeframe range and the ongoing lower timeframe dynamics.
In a subsequent tweet, Credible Crypto presents a low timeframe update:
As the price action develops, Credible Crypto delves into the nuances of the low timeframe. Despite a bounce in the support zone, the market is observed selling off back into it, failing to breach significant local highs.
The analyst notes the persistently elevated open interest (OI), signaling potential room for further downside movements. Credible Crypto elucidates that leveraged long positions are currently in the crosshairs, suggesting that shorts may need to close for profits or face forced closure in the event of a strong reversal or squeeze.
Key Levels and Spot Premium Considerations
Credible Crypto pinpoints crucial levels for potential liquidations, citing major pockets of long liquidations at 36.2k and 35.5k. Until a shift in the lower timeframe structure occurs, these lows remain potential targets.
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Despite short-term uncertainties, Credible Crypto maintains confidence in the health of higher timeframes, with the 34.8k level deemed resilient. Notably, the analyst observes a bullish spot premium, cautioning that while it signifies optimism, a sustained elevation may precede the next upward movement.
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