Bitcoin's recent price rally is losing steam. The cryptocurrency is struggling to maintain its gains above $60,000.
Popular trader Credible Crypto has sounded the alarm. He warns of a possible "liquidation cascade" towards $50,000.
BTC/USD is hovering around $62,403, down 1% from yesterday. It had briefly touched $65,100 on Bitstamp.
Market participants are getting jittery. Some argue buyers lack the firepower to keep the short-term uptrend going.
"Binance wants blood," Credible Crypto tweeted. He's not mincing words.
The trader points to concerning data from Binance. Spot market selling volume is outpacing buying. Open interest on Bitcoin futures remains high.
Credible Crypto expects a drop to "range lows". He's been banging this drum for days now.
Another trader, Crypto Chase, shares the bearish sentiment. He sees Bitcoin potentially slipping below $60,000.
"If we lose 59K~ cleanly, I think we head back towards mid 50K's if not lower," Chase tweeted. Talk about a gut punch for the bulls.
But it's not all doom and gloom. Some see potential for a bullish turnaround.
QCP Capital, a trading firm, is more optimistic. They're eyeing U.S. interest rate cuts as a potential catalyst for crypto.
The firm highlights strong inflows to U.S. spot Bitcoin ETFs. It's been 12 consecutive days of inflows. Not too shabby.
This contrasts with outflows from newly-launched Ether ETFs. Bitcoin's dominance in the options market is telling.
QCP Capital links this to the "macro-driven nature of the current rate-cut regime". Fancy talk for "Bitcoin might benefit from easier money".
So, what's the bottom line? Bitcoin's in for a wild ride.
