The further decline in the cryptocurrency market triggered a wave of massive liquidations for those holding leveraged long positions.
According to crypto data aggregator Coinglass, there was $324 million in liquidations in the past 24 hours, with the majority of that liquidation coming from long positions in Bitcoin (BTC) and Ethereum (ETH).
Now, analysts are debating what the next move will be for the top crypto asset by market capitalization.
Anonymous analyst Credible Crypto told his 413,000 followers on social media platform X that he would liquidate his short positions and probably start looking for long ones.
“Coinbase has been buying aggressively on the dip and has seen a significant increase in open interest (OI). As I mentioned earlier, I have booked profits on my major short positions. I think it's probably best to look for potential long positions at this point rather than short positions.”
Brandts, a noted trader, is increasingly predicting that BTC will hit an all-time high in late September or early October. Brandts is a practitioner of Elliott Wave Theory, which aims to predict price movements in a series of waves driven by crowd psychology.
According to the Elliott Wave Theory, an asset moves up in five major waves, and according to Brandts, BTC’s third wave is about to begin.
“To those asking, no, this has not been invalidated and remains my central point. I was wrong in thinking that the second wave of this last wave to the high is clearly still ongoing and the third wave has not actually started yet.”
At the time of writing, Bitcoin was trading at $57,941, down 6.5% in the past 24 hours and 21% from its all-time high of $73,737.
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Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies and digital assets. Transfers and transactions are at your own risk and you are responsible for any losses incurred. The Daily Hodl does not recommend buying or selling cryptocurrencies or digital assets and is not an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
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