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- Shortly after gaining momentum above the $29,000 price mark, Bitcoin has dropped to a new low.
- Prominent market figures shed light on the current state of the market.
Bitcoin’s price is once again a topic of discussion among crypto market players. This time, market players are attempting to break down the factors influencing Bitcoin’s recent underperformance.
The leading cryptocurrency has been trading downwards this week, and prominent crypto figures are collectively making known their stance on the market.
The sentiments are generally mixed, with some being optimistic in the near term, and others expressing certainty that a bearish takeover is underway.
Notably, Byzantine General, a longtime cryptocurrency analyst, took to X, formerly Twitter, to analyze Bacon’s current technical chart. In a post shared to his 161,000 followers, he shared a price chart depicting the state of the market.
At present, selling pressure is high, and bulls have consistently failed to push prices upwards.
“This is brutal. Longs keep getting liquidated over and over. Open interest finally moved, but only so little. Funding hasn’t budged at all.” The analyst wrote as he broke down the bearish technical chart pattern.
This is brutal.
Longs keep getting liquidated over and over. Open interest finally moved, but only so little. Funding hasn't budged at all.
— Byzantine General (@ByzGeneral) August 17, 2023
His comments come not long after Bitcoin lost momentum earlier today. The apex cryptocurrency failed to stay above $29,000 today and has since dropped to a new daily low at $28,353.
On-chain analyst says volatility squeeze is incoming
Peter Brand, a popular cryptocurrency trader, shared his trading chart and went on to state his position on the market. He asserts that Bitcoin is currently in a crucial position. Although he is leaning towards shorting his holdings as a swing trader, he believes that the market could be on the verge of kickstarting a bullish trend, if a bear trap is “sprung.”
“Bitcoin seriously challenging multi-contact point trendline from 2023 bottom. Move through Aug low would be a bear signal or bear trap. As a swing trader, I would respect the violation of the trendline. So, my positions would be either short or flat. Only if a bear trap is actually “sprung” would I consider it a bullish development. I strongly prefer horizontal chart construction.” His post read.
In response to Brandt’s analysis, Willy Woo, an on-chain analyst remarked that it is “Crunch time for Bitcoin”, adding that there are macro headwinds from the strength of the U.S. dollar.
He went on to explain that there is an increasing demand on the futures market, according to on-chain fundamentals. The market players driving this demand, according to Woo, are pro traders. “Either way, up or down, we are now setting up for a strong move. Volatility squeeze incoming.” He explained.
At report time, Bitcoin is trading at a press time price of $28,431. Losses have surged past 2% in the last 24 hours.
