Bitcoin longs got wrecked as the market embraced FUD, resulting in lower prices. But can BTC make another rally attempt?has once again pulled back below the $60,000 price range after a brief recovery last week. This comes just days after the market started to regain optimism for a recovery.
The current Bitcoin price performance is a reflection of the prevailing sentiment. The Bitcoin/crypto fear and greed sentiment dropped from fear to extreme fear in the last 24 hours.This outcome suggests that the market may not be out of the woods yet after last week’s crash. BTC’s short-lived rally saw it push as high as $62,754 during Thursday’s trading session. It had a press time price of $58,172, a 7.58% drop from its weekly high.The latest retracement occurred at the RSI mid-point.
There have been growing concerns about the state of the global economic markets after the recent unwind of the Japanese Yen carry trade. Some analysts fear that more economic fallout might be on the way. This also comes amid rising FUD regarding a recession.An assessment of Bitcoin from a liquidity perspective reveals potential exposure to liquidations. Our assessment revealed that addresses out of the money peaked at 20.3% which is roughly 10.84 million addresses at the height of the recent dip on 5th August.Roughly 3.7 million addresses had injected liquidity into Bitcoin near recent lows.
While liquidations may have played into Bitcoin’s current dip below the $60,000 price, there is no doubt that the market risks more downside if sentiment remains weak.Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.