Bitcoin Traders Turn Bearish as BTC Hits Lowest Level in Months

Market Sentiment Turns Negative

• Traders are increasingly bearish on Bitcoin, now expecting a drop to $55,000 instead of a rise to $84,000.
• This shift follows a downturn in Bitcoin's price, exacerbated by a significant sale from Strategy and ongoing ETF outflows.
• Currently, Bitcoin is trading below $68,000, its lowest level in nearly two months.

Investor confidence in Bitcoin's short-term recovery is waning as market dynamics shift. Users on the prediction platform Myriad, operated by Dastan, now assign a 53% probability to a decline to $55,000, a stark drop from the previous day's 62% likelihood of an upward trend.

Bitcoin has seen a decline exceeding 5% in the last 24 hours, with its current price around $67,312, reflecting a more than 12% drop over the past week.

Contributing to this bearish sentiment is a notable sale by Bitcoin treasury firm Strategy, which divested 32 BTC worth approximately $2.5 million last week. This marked the firm’s first sale since 2022, following a period of accumulating $57 billion in Bitcoin assets.

Market analysts had warned that such sales might impact investor confidence in Bitcoin, and recent events seem to confirm these concerns.

Additionally, U.S. Bitcoin ETFs have experienced an 11-day streak of outflows, with more than $3.4 billion withdrawn from these products, reversing earlier yearly inflows.

Traders betting on price increases have faced significant setbacks, with nearly $600 million in long positions liquidated in the last day, according to CoinGlass data.

Bitcoin has not traded below $68,000 since April 5, and its current price is 46% lower than its all-time high of $126,080, as reported by CoinGecko.