Bitcoin: Stable Trend After Facing Pressure And Impact Of 'Late Longs' Position Liquidation

Bitcoin has just gone through a period of quite pronounced fluctuation as the price dropped below $100,000 this month. Subsequently, the leading cryptocurrency has recovered to above $96,000, despite spending a week below the six-digit threshold. The sideways trend, lack of new momentum, has traders wondering about the market's next move. Pressure and the phenomenon of liquidation of the "Late Longs" position According to Amr Taha's article, a CryptoQuant QuickTake expert, there is a new trend in the market: the phenomenon of "late longs" liquidation events. The term "late longs" is used to refer to investors who enter the market after a strong price increase, often driven by FOMO emotions fearing missing out ( on opportunities ). These traders often use high leverage to enter orders, making them vulnerable to strong market fluctuations. When Bitcoin reaches local price peaks, the selling pressure may force these investors to liquidate their positions, creating a phenomenon of 'forced selling'. This phenomenon has two main impacts on the market: Reducing Open Interest(: Liquidating high leverage positions helps eliminate excessive leverage, contributing to market balance and reducing risks from lingering positions.Opportunities for Experienced Traders: When investors are forced to sell due to forced liquidation, prices may temporarily fall, creating opportunities for experienced traders to buy at attractive prices. They can then arrange new positions to prepare for the next price increase. Bitcoin Market Performance In the past 24 hours, Bitcoin has increased by 1.3% to reach around 96,725 USD. However, on a weekly and monthly basis, the overall price trend of this currency still shows a negative outlook, reflecting the general market instability. Another noteworthy point is that Bitcoin's daily trading volume has also significantly decreased. Specifically, BTC's trading volume has dropped from over 50 billion USD last Friday to 24.7 billion USD now. This decline may indicate a decreasing level of trading participation, reflecting investors' caution in the current market environment. Conclusion The current situation of Bitcoin shows a complex picture: this digital currency is facing pressure as the price drops below $100,000, while also witnessing the liquidation of the 'late longs' position, thereby reducing open positions and creating opportunities for experienced investors. Although there are some signs of short-term recovery, the market is still in a state of anticipation, hoping for a new catalyst to drive strong growth in Bitcoin price in the future. DYOR! )Write&Earn $BTC {spot}#Write2Earn #BTCUSDT(