Krypto para Analysis firm CryptoQuant has suggested that Bitcoin may have formed a local bottom following significant liquidations of long positions in the futures market.
According to the report, although the ongoing bearish trend and technical indicators point to potentially further declines, the reduction in selling pressure could point to a short-term recovery.
In a statement, CryptoQuant stated that more than 4,000 BTC long positions were liquidated on October 1, making it the second largest liquidation event of 2024. Such high levels of liquidation often occur during steep price declines, leading to a sharp decline in the number of contracts purchased. This can balance the market by reducing selling pressure.
“The liquidation of long positions may have formed a local bottom,” CryptoQuant said.
Historically, moments of significant losses and liquidations tend to mark local bottoms and provide opportunities for a short-term recovery. However, CryptoQuant warned that while the price may remain within its current range in the near term, continued buy-side strength will be crucial to reversing the recent decline.
*This is not investment advice.
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Source: https://www.bitcoinsistemi.com/analiz-sirketine-gore-bitcoinde-yerel-dip-gorulmus-olabilir-iste-bekledikleri/
