Bitcoin (BTC), the leading cryptocurrency in terms of market capitalization, is currently facing a potential price drop in the near future due to the escalating conflict between Iran and Israel. This geopolitical tension has caused a shift in overall market sentiment, leading to BTC breaking below the crucial support level of $62,150.
BTC’s Current Price Movement
As of now, BTC is trading around the $60,700 mark, experiencing a decline of over 4.1% in the past 24 hours. The trading volume has also surged by 65% during this period, indicating increased activity from both traders and investors.
Bitcoin Technical Analysis and Future Levels
Technical analysis suggests that BTC is currently bearish and is on track to test the next support level at $58,000. Despite this bearish outlook, BTC remains above the 200 Exponential Moving Average (EMA) on the daily timeframe, hinting at a potential uptrend.
Despite finding support at $58,000, given the current market sentiment, there is a possibility of BTC further declining and reaching the $54,000 level in the coming days.
On-Chain Metrics
On-chain metrics for BTC also reflect a weak bullish sentiment among traders and investors. Coinglass, an on-chain analytics firm, reports that BTC’s Long/Short ratio is currently at 1.02, indicating a mildly bullish market sentiment.
Furthermore, BTC’s future open interest has decreased by 5.6% in the last 24 hours and continues to decline, indicating that traders are either closing their positions or hesitating to enter new ones.
When the long/short ratio is above 1 and open interest is decreasing, it suggests that traders are bullish but cautious about initiating new long positions.
A recent post by a well-known crypto expert on X (formerly Twitter) revealed that traders on Binance, the largest cryptocurrency exchange, are taking advantage of the price dip. Data shows that 61.36% of top traders have long positions on BTC, while 38.64% hold short positions.