Bitcoin Swallowed 3 Weeks Gain in 3 Days: Would BTC Price Dive Ahead?

• Bitcoin price has lowered by 12% in the past 3 days.
• BTC market value has dropped from $2.14T to $1.86T in a few days.
• Bitcoin price has slipped below the 20-day EMA indicating bears’ grip.

Bitcoin (BTC) price has witnessed a strong bearish trend after a massive bullish trend. It has declined by 12% in the past three days and has declined below 20-day EMA. Bitcoin price has engulfed three weeks’ gain in just 3 days, reflecting a profit booking scenario.

Based on the technical chart, the BTC price has displayed a strong bullish rally. The bullish momentum was interrupted near the $108K before dipping. The price has been wandering in a small demand zone.

Traders Sitting on Short Position; What’s Next?

Ali is a crypto analyst who believes sellers are more active and prefer selling positions. Binance is a big exchange on which 62.6% of traders are riding short position $BTC futures short position.

That only 37.4% of traders held long positions indicates that market participants were pessimistic about the market’s continued decline.

Bitcoin shorting suggested that many traders anticipated short-term declines. This high short dominance suggested that Bitcoin might decline.

More market volatility and perhaps more shorting could result from Bitcoin’s price continuing to decline.

Conversely, a short squeeze brought on by an unanticipated price increase might result in higher prices as short sellers are forced to cover their positions.

Bitcoin Price Action and its Overview

Bitcoin coin was trading at $94,100.00 at press time which has declined by 3.35% over the past 24 hours. The market capitalization was $1.86 Trillion and the 24-hour trading volume was $107.82 Billion.

If the price loses the demand zone of $95K, buyers might lose control. If Bitcoin price starts trading below the $90K level, it may continue to fall. Here, a profit booking scenario has been generated which may result in a strong bearish rally.

Conversely, if buyers show interest in the demand and survive this dip, a decent bullish momentum can be observed. Buying pressure in this zone could lift the price to a new all-time high (ATH).

Turning to the technical indicators, the MACD and the Signal line have been falling and heading toward the Zero line. The histograms have turned to red which showcases the bearish forecast. The RSI triggered a death crossover with the RSI-based moving average and witnessed a drastic fall.

Bitcoin Price Today and its Forecast

Bitcoin has experienced a significant downturn, erasing three weeks’ worth of gains in just three days, showcasing a bearish sentiment in the market. The decline below the 20-day EMA indicates that sellers are currently in control, with a large percentage of traders taking short positions in anticipation of further price drops.

If Bitcoin fails to maintain support around the $95K demand zone, the market could see continued declines, potentially leading to new lows below $90K. Conversely, if buyers step in and demonstrate strength in this demand zone, a rebound accompanied by bullish momentum could drive price toward new all-time highs.

The current technical indicators suggest a bearish outlook, highlighting the need for cautious trading strategies amidst ongoing market volatility.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.