Bitcoin is no longer in “easy mode” – observers warn there will be a loss of leverage – TradingView News

Traders with leveraged positions in Bitcoin BTCUSD could be in for a nasty surprise as the cryptocurrency faces a critical crossroads that could cause the price to bounce in different directions, analysts warn.

“The market has been in easy mode, but there is clearly too much leverage at the moment and market makers are taking great delight in exploiting high emotions and degenerate behavior,” said pseudonymous crypto trader HoneyBadger in an April 11 post X

“Marketmakers are having the best time cutting everyone up,” he added.

Data from CoinGlass shows that $39 million worth of leveraged Bitcoin positions were liquidated in the last 24 hours, with a total of $18.38 million in long positions and $20.62 million in short positions. positions.

HoneyBadger pointed to the Bitcoin price chart that appears to be forming a symmetrical triangle, suggesting a neutral pattern, as opposed to a bullish ascending or bearish descending triangle, which traders can use to better assess its direction.Cointelegraph

He believes that traders may prematurely interpret this as a “retest of the triangle,” which would prompt them to enter long positions with great confidence. He warns that these traders could be caught off guard by a fake – when the price briefly breaks out of a chart pattern but quickly retreats.

Andrew Kang, co-founder of Mechanism Capital, is more optimistic and believes that the uptrend will continue after the Bitcoin halving on April 20 and reach new all-time highs.

“I expect BTC to reach $80,000 by May,” he said in an April 11 post on X.

According to CoinMarketCap data, Bitcoin is currently trading at $70,500 after testing its $68,500 support level three times in the past week.Cointelegraph

On April 10, Bitcoin price briefly fell 3% below support levels following the release of US inflation data, which disappointed many observers.

Recently, on April 2, the market witnessed a sudden 5% drop in Bitcoin price from $69,450 to $65,970, eliminating $50 million worth of Bitcoin long positions.Cointelegraph

However, the increase in leveraged positions taken by traders in recent days shows that another similar 5% decline will have a much larger impact on long positions.

If Bitcoin's current price rises 5% to $73,819, about $2.14 billion in short positions will be liquidated, according to CoinGlass data.

Gold proponent and Bitcoin critic Peter Schiff claims that there are “far too many” people with long positions in Bitcoin who are too confident that “they can’t lose.”

“Markets rarely develop the way speculators expect. Most of the time they end up disappointed,” he explained in an April 11 post on X.

This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.

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