The recent pullback in Bitcoin (BTC) and Ethereum (ETH) prices has revived expectations of a short-term decline in the cryptocurrency market. Jiang Zhuo’er, founder of Lebit Mining Pool, also known as B.TOP, pointed out that both major cryptocurrencies have fallen below their rising price channels.
Jiang Zhuo’er stated in a social media post that the downward break of Bitcoin and Ethereum’s ascending channels sends a negative signal from a technical perspective. Zhuo’er also pointed out that the closure of ETF markets in the US over the weekend temporarily eliminated potential institutional buying pressure from spot Bitcoin and Ethereum ETFs.
The renowned figure argued that current conditions are unfavorable for investors taking long positions, warning that a new downward trend in the market may begin.
On the other hand, Coinglass data suggests that the Bitcoin price may face significant liquidation clusters in the coming period.
According to the data, if Bitcoin falls below $76,000, the total liquidation volume of long positions on major centralized cryptocurrency exchanges could reach approximately $797 million.
Conversely, it is stated that if Bitcoin regains strength and rises above $80,000, there could be liquidation pressure of approximately $708 million on short positions in centralized exchanges.
