Is Bitcoin price going to crash again?
Bitcoin's price recently fell by 6% between November 13 and November 15, marking its first correction after surpassing the previous all-time high of $73,880. Despite this decline, Bitcoin continues to show a bullish pattern with higher highs and higher lows on both short- and long-term charts. To maintain bullish momentum, it is crucial for Bitcoin to stay above $85,000. Analysts suggest that if the price cannot hold this level, bearish conditions may arise due to significant overleveraged futures positions, with current leverage ratios estimated at 270% of previous highs. Furthermore, open interest in Bitcoin futures is at an all-time high, indicating a prevalence of leveraged positions. A liquidity sweep around the $85,000 range is anticipated as this level has the potential to trigger significant liquidations of leveraged positions. Additionally, the Coinbase premium index dropped 88% on November 14, signaling a possible reduction in buying pressure from retail investors.
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