The chart above shows that short positions have exceeded long positions, with the cumulative short liquidation leverage now standing at $2.27 billion, compared to the cumulative long liquidation leverage of $18.89 million.
This imbalance suggests a strong bearish pressure, aligning with Bitcoin’s recent price decline from $58,819 to $57,209.
These developments underscore the bearish sentiment driven by the U.S. government’s transaction. The sharp increase in short positions could lead to further downward pressure on Bitcoin’s price in the coming days.
BTC Price Forecast: All Eyes on $55k Support
As Bitcoin navigates these turbulent waters, technical analysis suggests that all eyes are now on the $55,000 support level. The Donchian Channels, a momentum indicator, show Bitcoin trading between $70,015.86 (resistance) and $49,111.87 (support).
BTC dipping below the midline of the channels at $59,500 indicates a bearish trend, with potential further downside toward the $55,000 level.
