it’s hasn’t been a pretty past 24 hours for Bitcoin investors.
The cryptocurrency has exhibited a strong reversal after hitting $9,800 on Monday. As of the time of this article’s writing, BTC trades for $9,200, $600 shy from the peak.
This reversal to the downside has resulted in the liquidation of dozens of millions of long positions on BitMEX. Skew.com suggests that approximately $60 million worth of long positions have been wiped out during this move lower.
With bears seemingly back in control, top analysts are identifying what levels traders should watch moving forward.
Bitcoin Needs to Hold This Level to Maintain Bullish Skew: Analyst
Blockroots founder Josh Rager says that while Bitcoin is still range-bound, the asset is approaching crucial price levels.
The crypto trader explained that if Bitcoin breaks down below ~$9,000, a move to $8,900 then $8,500 will follow:
“BTC’s range is clear. Current support that has been holding the past three weeks is the mid-range Break down here and price likely to see $8900 followed by $8500 range bottom,” Rager wrote, referencing the chart seen below.
Rager added that should Bitcoin break $8,500, it will be a “long summer for Bitcoin holders.”
This comment was made in reference to how important $8,500 has been for BTC over the past two months. The level acted as crucial support at two retracements, with Bitcoin bouncing off that level to recover towards $10,000.
$8,500 has also been an important level to the bull and bear cases earlier in 2020 and even in 2019.
Will It Hold $8,500? Not Everyone Is Convinced
Unfortunately for bulls, not everyone is convinced the cryptocurrency will hold at that level.
A cryptocurrency analyst recently doubled down on his long-held sentiment that Bitcoin’s recent price action is textbook distribution. Distribution meaning a topping pattern in the chart of an asset.
Referencing the distributive properties of the chart below, he shared:
“A couple more clues developing that lend themselves to HTF distribution. 1. Rising Demand on the verge of failing. 2. Side by side, ascent vs descent with selling the dominant pressure from volume. We break to the downside, I’m not interested in $7ks. Much lower.”
The on-chain outlook is similarly as bearish.
The founder of blockchain data firm ByteTree Charlie Morris said earlier this month that Bitcoin’s on-chain statistics are “dire”:
“1-week network velocity down to 454%, 5-wk 556%. Tx value down, av tx size down, fees down, MRI shot to pieces. Why the lack of interest? Can’t see price holding up. Fair value <$7k,” Morris wrote.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com BItcoin Breaking Below $8,500 Will Make This Summer "Long" For Holders