Will Bitcoin Price Crash? $5.64 Billion in Profits Cashed Out

Published by

Zameer Attar

October 10, 2024

Bitcoin (BTC) Price to Close Uptober With a Pullback to $65k?

Bitcoin (BTC), the world’s largest cryptocurrency by market cap is poised for a significant price decline as investors have realized billions worth of profits in the past 24 hours. Additionally, BTC has formed a bearish price action pattern, further supporting this negative outlook.

$5.64 Billion of Profit Booking

On October 10, 2024, a prominent crypto analyst made a post on X (Previously Twitter) that over $5.64 billion in realized Bitcoin profits were recorded in the past 24 hours. This massive profit-taking in a short period suggests a significant price decline in the coming days.

Current Price Momentum

As of now, BTC is trading near $60,730 and has recorded a price decline of over 2.75% in the past 24 hours. During the same period, its trading volume dropped by 8%, indicating lower participation from traders and investors compared to the previous days. This recent price decline appears to be potentially driven by significant profit-taking.

Bitcoin Technical Analysis and Upcoming Levels

However, CoinPedia’s technical analysis suggests that BTC appears bearish as it has formed a bearish inverted cup and handle price action pattern on the daily time frame. Whenever an asset forms this bearish pattern, it is often seen as a signal for potential price decline.

BTC is currently near the neckline of this pattern, with crucial support at $60,200, backed by the 200 Exponential Moving Average (EMA). If BTC breaks this level and closes a daily candle below $60,000, it could drop to $58,000 or lower.

Bearish BTC’s Long/Short Ratio

This negative outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, BTC’s long/short ratio currently stands at 0.931, indicating a strong bearish market sentiment among traders. Meanwhile, 54.05% of top traders hold short positions, while 45.95% hold long positions.

Combining this long/short ratio with technical analysis and recent profit booking, it appears that bears are currently dominating the asset, potentially leading to a significant price decline.

Also Read :
Ethereum Struggles: Is It Ready To Rise or Fall Below $2,116?
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Zameer Attar

Zameer is a financial analyst and writer with a particular interest in cryptocurrency markets. He has been studying cryptocurrencies and their market behavior for several years and deeply understands the factors that affect the price of cryptocurrencies. His expertise lies in his ability to use both technical and fundamental analysis to make informed predictions about the future direction of cryptocurrency prices. He has a strong understanding of market sentiment and uses this to inform his trading decisions and price predictions.