With the cryptocurrency market capitalization down by 1.68%, Bitcoin is still falling due to increasing supply pressure. Even though 90% of Bitcoin holders are in profit, the downward trend indicates that this percentage will eventually decrease.
Moreover, there is a significant pessimistic side to the cryptocurrency market, with long liquidations of nearly $500 million. On the other hand, 70% of HODLers have been investing for more than a year, which shows that investors have underlying confidence.
Bitcoin has declined by 1.10% as the Asian markets opened this week and is currently trading slightly above the $65,000 range. With price rejection below the $64,050 range, the BTC price maintains this level, indicating demand at lower levels. But during the last 10 days, Bitcoin has lost about 5% of its value and failed to form a meaningful bullish candle.
Bitcoin price performance
The BTC price fell below the 50D EMA and supported the trendline following the flag pattern decline. As the inverted head and shoulders pattern fails, this decline results in bullish players starting to lose optimism.
Moreover, the bearish trend has reduced by 7.62% in the last twelve days, along with the conclusion of a short-term surge. With the formation of a long tail in the daily candle and a bullish reversal in the shorter time frame, Bitcoin is currently trading around $65,573.
Derivatives Detect Reversal Chances?
Over the past three days, the open interest has been dropping even with a positive funding rate of 0.00114035. The OI is presently at $17.616 billion, down 4.88% over the past week and 2.63% over the past 24 hours.
Rising financing rates indicate optimism among long traders, while dropping OI indicates profit booking and/or leveraged long position liquidation. This reflects a dichotomy of cautious optimism in the market.
If cautious dealers continuously secure footing, the Bitcoin cost seem switch from its $65,000 level.
How Much Lower Can Bitcoin Get?
As the crypto market continues to decline, the Bitcoin price, which is currently hovering around $65,000, warns of an additional correction. However, with less price rejection and dovish derivative data, the underlying conviction of optimistic traders is increasing.
Optimistically, the bull run from this support might reach $70,000 by the end of the week, undercutting the recent pullback.
On the downside, a decline below $65,000 will be deadly for Bitcoin and altcoins, accelerating the bearish trend. In such a circumstance, the next demand-dominating support level is $60,070, representing a 7% loss.
