Bitcoin is in for a bumpy ride. The BTC price just dipped below $59,000, marking the first time it’s been this low since mid-July. The relentless selling pressure is pushing Bitcoin toward the $58,000 mark, with an 8% price drop leaving long positions “rekt” and traders reeling.
Data from Cointelegraph Markets Pro and TradingView shows this ongoing sell-side pressure is dragging BTC/USD to three-week lows. The weekend’s grim market conditions set up an equally grim weekly close, with analysts warning that Bitcoin bulls might face even more pain in the upcoming week.
Keith Alan, co-founder of Material Indicators, pointed out that Bitcoin has entered the CME Gap, which technically can only be filled during traditional financial trading hours. This gap between closing and opening levels on CME Group’s Bitcoin futures markets means $58,000 is now a near-term target for BTC.
Popular trader Daan Crypto Trades added that Bitcoin might be opening with a new CME gap if it trades at its current value. His analysis shows that we might see a new gap between $60K-$63K, making this an interesting week ahead.
The sell-off isn’t just a flash in the pan. Alan predicts that the weekly close, which was set to leave BTC/USD down more than 8% at the time of writing, won’t bring any lasting relief. He expects Bitcoin to test support levels next week and fill the gap, warning bulls not to hope for a lower low.
CrypNuevo, another well-known trader, suggested that a “flush” to $58,000 could reset market sentiment. He explained that traders who bought optimistically at $60K-$61K might panic and sell if prices dip to $58K, which could be just the shake-up the market needs.
Data from CoinGlass highlights the extent of the damage: nearly $200 million of long positions have been liquidated since August 1, with BTC/USD cutting through major buy liquidity after falling below $60,000. Daan Crypto Trades noted that the relentless downtrend is drawing in new orders, with longs getting rekt, shorts jumping in, and dip buyers starting to enter the fray. Volatility is guaranteed here.
As the $56,000-$60,000 range remains crucial support for the bulls, traders are bracing for what comes next in this volatile market. Remember, every trading move involves risk, so always do your research before making decisions.
