Bitcoin’s price is struggling. After a failed attempt to break through $100,000, it dipped as low as $89,000, leaving many investors in the red and increasing the chance of more selling.
Bitcoin’s Mounting Losses
Recent market volatility has hammered Bitcoin’s price. Analyst Axel Adler Jr. points to a concerning trend: investors are taking significant losses. This persistent loss highlights Bitcoin’s struggle to regain upward momentum and suggests many are either holding losing investments or selling at a loss – a sign of weak market sentiment. As Bitcoin fails to hold key support levels, these losses could grow, potentially leading to more selling pressure.
While realized losses are rising, Adler notes they’re far smaller than the panic selling seen in late 2022. This suggests a more stable market, with investors selling more cautiously. The overall level of realized losses remains moderate, indicating continued demand for Bitcoin even in this tough market. If this trend continues, occasional increases in selling pressure are unlikely to derail a general upward trend.
The Bybit Hack’s Impact
Even the recent Bybit exchange hack hasn’t dramatically altered the net realized profit/loss metric, which remains flat and low. Analyst Negentropic points out the hack only temporarily stalled Bitcoin’s push towards $100,000, causing a dip to around $95,000. The key liquidity zone remains around $92,000, and a significant surge in realized losses could solidify the formation of a bottom.
A Potential Breakout?
Despite recent weakness and the possibility of further price drops, crypto expert Captain Faibik sees a positive sign. A 1-day chart shows a potential breakout from a “Falling Wedge” pattern. A successful breakout could send Bitcoin rallying towards $105,000.
