Bitcoin triggers panic on the market: future price prediction

Yesterday, Bitcoin recorded the first correction candle after a long phase of increases that seemed to be unstoppable, causing liquidations on the futures markets for over 1 billion dollars.

Already this morning, prices have partially recovered the dump, positioning themselves above 66,500 dollars and opening hopes for the continuation of the bull run.

Many expect a more marked reversal in the coming days, but will this really be the case?

Below, analysis and prediction of future prices of the crypto.

Bitcoin rejected at historic highs: flash crash at $59,000 and futures liquidations of $1 billion

Yesterday, Bitcoin looked so good that it was propelled to new all-time highs, with digital gold prices inching ever closer to the $69,000 target reached only once before in November 2021.

Once the fateful level has been reached, however, the offer really started to make itself feltbringing prices below $67,000 in the same trading hour, and then continuing the dump in the following hours until resulting in a flash crash that collapsed in the $59,000 area.

Although most market analysts’ forecasts suggested the possibility of a collapse of this magnitude, given past price trends, many traders panicked.

For Coinbase’s European traders, the anxiety during the bearish maneuver was greater, so much so that Bitcoin fell to 49,500 euros, collapsing by 23.5% in just 3 hours.

A price contraction of this magnitude has triggered the liquidation of many overexposed leveraged Bitcoin futures positions, for a total value of 1.18 billion dollars.

In particular, the longs liquidated are 890 million dollars while the shorts are 290 million dollars.

Usually when the crypto market is “overleveraged”, it responds with candles that sweep away all the major speculators, re-establishing order and calm in the trading sessions.

In yesterday’s article on the topic of liquidations, we talked about the intrinsic danger of a market with such a strong tendency to require leverage, with the funding rate which in some cases had even reached the threshold of 0.25%.

On Bitcoin and Ether it had reached above 0.1%, but already today the values ​​have been almost halved, eliminating the market anomaly.

The longs still control the situation and are demanding most of the leverage from the market, but at the same time they are no longer as confident as yesterday.

Looking at the Coinalyze graph, we note that open interest also suffered a sharp slowdown, falling by 2.8 billion dollars in a few hours, but immediately recovering 2 billion of lost ground and repositioning itself to make a new upward climb.

Volume on futures markets is up 40% in the last 24 hours marking strong interest in tradeswhich amount to $214 billion according to Coinglass data.

Now the most difficult part is to stay clear and analyze the Bitcoin graph objectively, without getting caught up in emotions and irrationality, and making a price prediction based on the data.

Future price analysis and prediction: is the Bitcoin bull run already over?

After yesterday’s flash crash, several traders shouted at the end of the bull market, mistakenly convinced that after the outcome of just one daily candle the reversal of such a strong trend that has continued unabated upwards since October 2023 can be established.

Although, in fact, yesterday’s correction could certainly open the doors to a broader tracking phase, at the same time The bullish medium-term forecasts which point to a clear exceeding of the historical highs do not change.

In fact, as long as the price of Bitcoin remains above $60,000, we find all the necessary technical conditions to continue to be bullish on the imminent future of the crypto.

The outcome of the trading in the next few hours will depend greatly on a possible new break in the highs or a stagnation of prices below this figure.

In the first case we could celebrate another bull run, which this time would culminate in a price discovery phase of BTC.

In the second case, however, we could expect another dump between now and the end of the week, which, however, will go below the low reached yesterday with low probability.

Here we must underline, to the delight of the bears, that i volumes spot market in this post-dump phase of Bitcoin are very low, and not at all encouraging of another bullish acceleration.

If volumes do not arrive when the US markets open, the trend could be destined to decline in the short term.

In any case, the most probable forecast between now and the next few days is that of a range between 69,000 and 60,000 dollars, with the prices of the crypto which could fluctuate heavily within this range.

The bull run isn’t over yetand we still have months of pure fun before the bears can truly take control of the situation.

However, in this pause phase, where prices must settle at a fair value after large sessions of speculative trading, it is advisable not to expose yourself excessively to altcoins or leveraged positions, as the risk of getting hurt is very high.

Medium and long-term forecasts always indicate a largely positive scenario for Bitcoin and the rest of the crypto market, but now it’s time to stop and breathe, waiting for new candles to give us the right indication on the short-term price action.