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After another strong game for his all time in the past week, the price of Bitcoin has difficulty building on at his recent bullish momentum. In recent days, Premier Cryptocurrency has been specifically slow and listless.
On Friday, June 20, the Bitcoin price took a serious hit – together with the rest of the cryptomarket – and fell shortly under $ 103,000. However, the latest market data suggest that the price of BTC can enjoy some stability after the recent round of long liquidations.
BTC acceleration for a series of ‘healthier price action’: analyst
In a Quicktake post on the cryptoquant platform, on-chain analyst Amr Taha explained The dynamics between the Bitcoin price and the recent long liquidation event. According to the online expert, the market leader could prepare for more stable price promotion in the coming weeks.
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Taha revealed that the critical liquidation cluster of $ 103,000, which had a large volume of long positions on Binance, was cleared. This cascade of long liquidations came after the price of Bitcoin fell to the level of $ 102,500 on Friday evening.
According to data from cryptoquant, the price drop caused the long liquidations on Binance, the world’s largest exchange through trade volume, more than $ 160 million. The analyst on the chain noted that this long liquidation event also coincided with a major change in the Bitcoin network contractor volume on the cryptocurrency exchange.
Taha emphasized that the net tone volume has moved deep into the negative area and has fallen almost $ 100 million last day. As observed in the graph below, this last dive marks the third time that the net tone volume has fallen to this level in June.
According to Taha, the change in this metric suggests that the aggressive sales outweigh the purchase activity during the liquidation event. The on-chain analyst outlines two possible reasons for this trend, including that long positions were forced to close, pushing sales orders on the market because the Bitcoin price dropped below $ 103,000.
Taha added that some sections of Bitcoin Retail Traders possibly pushed the panic button and filled in new sales orders for fear of further losses. Ultimately, the Crypto analyst concluded that the combination of long liquidations and extremely negative net tone volume may not be completely bad for the flagship cryptocurrency.
Taha said:
Although such events often feel devastating at the moment, they lay the foundation for healthier price action. Given this dynamic, the path of the least resistance can now shift up, while Bitcoin stabilizes with reduced leverage above the most important support levels.
Bitcoin -price at a glance
From this letter, the price of BTC is around $ 103,450, which reflects a decrease of more than 1% in the last 24 hours.
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Featured image of Istock, graph of TradingView