The total liquidation level Delta of the Bitcoin market recently looks not very optimistic and shows a negative trend. The liquidation level of shorts is significantly higher than that of longs, which means that the power of sellers may be stronger than that of buyers. In addition, there is a liquidation zone of $342 million at the price of $59,400, which has attracted widespread attention in the market. If combined with the Fibonacci level, this may mean that the price of Bitcoin may drop to $59,000 in order to liquidate those long positions.
Here is a list of all BTC pullbacks since the 2022 bear market bottom:
• -23% (February 2023)
• -21% (April/May 2023)
• -22% (July/September 2023)
• -21% (January 2023)
• -18% (March 2023)
• Currently close to -18% (April 2023)
The pullback is only the sixth major retracement since the 2022 bear market bottom.
BTC has retreated nearly 18% so far
However, most retracements during this cycle are usually slightly deeper than -20% and last for 2-3 weeks or up to 2 months.
After this price downturn, it is possible that the price of Bitcoin will rebound and reach new highs to attract liquidity in the upper range. However, even so, the selling pressure in the market is still quite strong.
Although the accumulated liquidity level Delta looks disproportionate, in this case, we cannot say with certainty that the Bitcoin price will rebound from the $59,400 level.
Meanwhile, Bitcoin is trading at $63,500, up more than 4% since its drop on Saturday.
As investors, how should we respond to the cryptocurrency market?
Although investors may adjust their positions before the halving, we should focus on the demand side of the market rather than focusing too much on the halving itself.
Therefore, perhaps one of the most important impacts of the Bitcoin halving is its marketing effect and long-term absolute scarcity in a world of fiat currency inflation.
Recommend 4 altcoins with 100x potential
1. TON
TON (The Open Network) is a decentralized network that aims to build an open Internet environment for everyone. Originally conceived by Telegram founders Nikolai and Pavel Durov, TON's development has now shifted to community-driven. This shift emphasizes its fundamental principles of decentralization and the broader community's commitment to its growth and innovation.
Although Telegram later distanced itself from the project due to regulatory challenges with the SEC, the network remains closely associated with the messaging app, integrating various blockchain-based services, such as cryptocurrency payments and storage solutions, directly into Telegram’s ecosystem.
2. YGG
YGG Yield Guild Games' treasury assets need to grow by at least 1000% in 4 years to reach the fully diluted valuation of its tokens, and 1500% when liquidity is insufficient to reach the fully diluted valuation of its tokens. If the current growth rate is maintained, the number of scholars is expected to exceed 200,000 by the end of 2026. Yield Guild Games has strong investment capabilities and has generated 23M in revenue in half a year.
3. PYTH
Pyth Network is a decentralized first-party financial oracle that provides real-time market data on-chain in a secure and transparent manner without the need for third-party middlemen (nodes).
PYTH Solana Ecological Oracle Pyth Network: A connector of the traditional financial world, with a mysterious and powerful team background; many top financial institutions on Wall Street and large cryptographic institutions cooperate with Pyth to provide data sources. The oracle is a bridge connecting the blockchain world and the real world, allowing the blockchain world to obtain data from the real world.
4. LINK
Chainlink was launched in June 2017 by San Francisco fintech company SmartContract. The developers describe it as a secure blockchain middleware designed to enable smart contracts to access key off-chain resources such as data streams (databases), website (WeChat, Taobao, etc.) APIs, and traditional bank (Alipay, WeChat Pay, etc.) account payments. The ChainLink network is a distributed network of ChainLink nodes, all of which directly deliver specific data, APIs, and the use of various offline payment functions to smart contracts.
The Chainlink network consists of two separate parts, the on-chain and the off-chain, which must interact to provide services. The network is built in such a way that it can be upgraded, so its different components can be replaced as better technologies and techniques emerge. The on-chain component of the network filters oracles based on the metrics requested by one party of the smart contract through a service level agreement (SLA).
Chainlink's token LINK sale is capped at $32 million, with a total supply of 1 billion. 35% of all LINK tokens will be used to incentivize the ecosystem through node operators, and an additional 35% will be sold in a public token sale. The final 30% of the total LINK tokens will remain with the company for continued development and employee payments.
Chainlink (LINK) emerges as the next best cryptocurrency to hold ahead of the Bitcoin halving event. The project is a core part of DeFi as it creates oracle solutions for smart contracts.
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