Bitcoin (BTC) Price May Drop to $58,000 or Lower as $5.64 Billion in Profits Were Booked in the Past 24 Hours

Bitcoin (BTC), the world's largest cryptocurrency by market cap is poised for a significant price decline as investors have realized billions worth of profits in the past 24 hours.

Bitcoin (BTC) price dropped to $60,000 on October 10, 2024, as investors realized over $5.64 billion in realized Bitcoin profits in the past 24 hours.

This massive profit booking could lead to a significant price decline in the coming days.

As of now, BTC is changing hands at $60,730 and has recorded a price decline of over 2.75% in the past 24 hours. During the same period, its trading volume dropped by 8%, indicating lower participation from traders and investors compared to the previous days.

This recent price decline appears to be potentially driven by significant profit-taking.

Moreover, BTC’s technical analysis suggests that it appears bearish as it has formed a bearish inverted cup and handle price action pattern on the daily time frame. Whenever an asset forms this bearish pattern, it is often seen as a signal for potential price decline.

BTC is currently near the neckline of this pattern, with crucial support at $60,200, backed by the 200 Exponential Moving Average (EMA). If BTC breaks this level and closes a daily candle below $60,000, it could drop to $58,000 or lower.

This negative outlook is further supported by on-chain metrics. According to the on-chain analytics firm Coinglass, BTC’s long/short ratio currently stands at 0.931, indicating a strong bearish market sentiment among traders. Meanwhile, 54.05% of top traders hold short positions, while 45.95% hold long positions.

Combining this long/short ratio with technical analysis and recent profit booking, it appears that bears are currently dominating the asset, potentially leading to a significant price decline.

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