Bitcoin Nears Bottom? QCP Analysts Spot Signs of Capitulation as Prices Tumble Below $59K
05 Juillet 2024 - 8:00AM
NEWSBTC
Recent trading patterns have led QCP Capital, a prominent trading
firm, to highlight potential signs of a market bottom in the crypto
market. Bitcoin, the leading digital currency, recently dipped
below $58,000, causing analysts to focus on the behavior of miners
and their possible capitulation. Such capitulation could indicate a
market bottom, similar to past market cycles. In 2022, a parallel
hash rate drop saw Bitcoin prices plummet to $17,000, suggesting a
recurring theme that could signal an upcoming rebound. Related
Reading: Buckle Up: Here Is Why Bitcoin Might Just Be Gearing Up
For a 200% Surge Bitcoin Bottom In? Bitcoin’s fall from the
critical $60,000 support level to a current low below $58,000 at
the time of writing has triggered discussions among QCP’s analysts.
In their latest update on Telegram, they describe this downturn as
aligned with historical precedents that usually precede significant
price recoveries. This trend suggests that while the market appears
bearish, underlying movements might hint at an emerging bullish
scenario. Despite the market’s downward trajectory, QCP remains
optimistic about the potential for recovery, driven by specific
market mechanisms and upcoming financial products. The options
market, specifically in Ethereum (ETH), is seeing a skew towards
call options for upcoming months, reflecting a bullish sentiment
among traders. Additionally, QCP analysts have identified
significant liquidation clusters for Bitcoin and Ethereum that, if
triggered, could lead to aggressive short squeezes, potentially
driving up prices. QCP has also proposed a strategic ETH trading
strategy using KIKOs (Knock-In, Knock-Out options) to capitalize on
market volatility while protecting against severe downside risks.
This strategy underlines the firm’s anticipation of positive shifts
in the ETH market, possibly fueled by the approval of new financial
products like the anticipated S-1 forms for Ethereum
exchange-traded funds (ETFs). BTC Sharp Decline Amid Widespread
Liquidations In the last 24 hours, Bitcoin and Ethereum have
experienced notable declines, with prices falling to $58,057 and
$3,134, respectively. This downturn has significantly affected the
trading community, with Coinglass reporting total market
liquidations of approximately $387.78 million; a large portion
involved Bitcoin and Ethereum. The liquidation patterns suggest a
predominance of long positions, indicating that many traders
expected a price increase, which did not materialize. While the
immediate market conditions appear grim, deeper analysis by crypto
experts like Crypto Patel suggests this could be the precursor to a
more significant market movement. Related Reading: Crypto Carnage:
Nearly $200 Million Liquidated as Bitcoin Slips Below $61,000
Patel’s analysis points to Bitcoin dropping to lows of around
$55,000, a sentiment that may appear negative to others who remain
optimistic that the bottom is in and surge is next. #Bitcoin
Analysis Update 🚨 Hope you followed my analysis! $BTC hit Break of
Structure (BOS) and made a new low, perfectly rejecting from the
Bearish OB. I’m still bearish and see a potential drop to $55,000.
Expecting a new OB to form at $61k-$62k, leading to a small pump…
https://t.co/LiMD6e4mdF pic.twitter.com/HiY5OWX6tt — Crypto Patel
(@CryptoPatel) July 4, 2024 Featured image created with DALL-E,
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