Bitcoin Price Sees Sharp Fluctuation: Market Cautiously Neutral

The price of Bitcoin fell significantly after surpassing the $113,000 level, dropping to $107,000. The price movements in the last 24 hours have caused losses for both bullish and bearish investors in the cryptocurrency market. In particular, the liquidation of $657 million worth of leveraged positions once again highlighted the fragility in investors' risk appetite.

Alexia Theodorou, Director of Derivatives at Kraken, emphasized that there are signs of recovery in the market despite the drop. Theodorou stated, "Despite the sharp price movements in the last 24 hours, the long/short ratio in Bitcoin futures has approached neutral levels. This indicates that investors believe the market may react after the excessive selling." Additionally, she noted that many investors have cautiously begun to open new long positions despite the decline.

On the other hand, FxPro senior market analyst Alex Kuptsikevich has a more cautious outlook regarding the current market situation. Kuptsikevich remarked, "The bulls were unable to push the price above the last peak, and Bitcoin has returned to its 200-day moving average. This suggests that a short-term downtrend is forming." The expert added that if the price can remain in these regions, a long period of consolidation followed by an upward breakout scenario is still valid for the bulls.

The recent fluctuations are attributed to high leverage ratios, weak liquidity, and macroeconomic uncertainties. However, off-exchange Bitcoin accumulations and ETF inflows indicate that the market is supported by long-term investors. This shows that investors maintain their interest in the market even during corrections. These temporary fluctuations in Bitcoin's price also bring critical levels that investors should monitor. Paying attention to the $107,000 level will be important for evaluating potential price movements.