Bitcoins [BTC] Price battles continue as analysts warn of further falls

by James · March 4, 2023

BTC long liquidations rose to their highest position since August 2022.
Analysts believe that a decline in BTC’s price is imminent.

After the sharp decline in Bitcoins [BTC] price i early opening hours On March 3, long liquidations rose to a seven-month high, data from Coinglass knew.

The fall in value was triggered by concern and uncertainty regarding Silvergate capitala financial institution recognized for its supportive attitude towards digital currencies.

Source: Coinglass

According to CryptoQuant analyst caueconomy, these long liquidations were the third such event since the May 2022 Terra/LUNA crash and the second after the fallout of cryptocurrency FTX in November 2022.

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The pseudonymous analyst further found that the sharp decline in the market was caused by a massive spot sell-off on most exchanges, especially on Binance, where many buyers had positioned contracts.

Source: CryptoQuant

More pain for BTC holders?

With BTC struggling to regain the $25,000 price tag, another CryptoQuant analyst with the pseudonym CryptoOnchain have believed that the price of the royal coin may fall further.

According to CryptoOnchain, while short-term holders have bought BTC, long-term holders have not supported the recent price rise.

Taking advantage of the price growth so far this year, an on-chain assessment of BTC’s price revealed an increase in coin distribution among these short-term holders as well.

BTC’s exchange supply of 1-3 month holders was spotted at the highest value since June 2022, noted CryptoOnchain.

Source: CryptoQuant

Also, the crypto market has seen an increase in the outflow of stablecoins from exchanges, which cannot sustain the current price increase and could potentially lead to a further decline in prices, the analyst added.

Another analyst Joao Wedson warned investors to prepare for a “possible new scenario of price capitulation.”

Wedson reviewed BTC’s Delta Cap calculation and found that a price floor is formed when the coin’s market cap crosses the Delta Cap.

This crossing occurred on three previous occasions: in 2011, 2015 and 2018 and in all three cases the crossing was followed by a significant drop in BTC’s price.

Read Bitcoin [BTC] Price prediction 2023-24

While the crossing is yet to occur in the current market cycle, Wedson cautioned that “we cannot rule out the possibility of new lows for Bitcoin, as this would be the first time in history that the crossing did not occur.”