Bitcoin (BTC) Price at Dire Straits: Has the Bull Run Deferred?

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Bitcoin price dropped below $61,000 and triggered more than $500 million worth of liquidations over the past 24 hours. The drop is seen in the U.S. stock markets too, which is speculated to be an outcome of the growing tensions between Iran and Israel. Besides, nearly $242 million of BTC ETF and $48 million of ETH ETF were also dumped, which has sent shockwaves across the markets. 

Currently, the BTC price has reached the key support levels around the mid-range, wherein the bulls have begun to exert some pressure. Although the price is speculated to drop below $60,000 yet again, these indicators suggest that a trend reversal could be on the horizon. 

The above chart shared by an analyst, ALI, shows a notable rise in whale accumulation. These whales have bought over 50,000 BTC in the last 10 days worth more than $3 billion. Meanwhile, a major part of this could be the ETFs as well. The accumulation may indicate the whales could be preparing for a bullish quarter; however, the OTC desk balances suggest the upcoming bull run could be slowed down. 

The OTC desk is used by traders with high volumes, usually starting at $50,000, as it allows them to execute large traders without price slippage or exposure to the public. The balance in the OTC desk has hit a 2-year high. The levels have reached above 400 BTC, doubling in just 5 months, the highest since May 2022. Historically, the increase in BTC OTC desks has been associated with a decline in its price. The rise in these levels suggests a huge possibility of a sell-off, which could drive the Bitcoin price down. 

However, in the long term, the Bitcoin price is about to break above the downtrend channel, which may kick off a potential parabolic run of this cycle. These geopolitical events usually create short-term entry opportunities, as the dip may not last long. Therefore, the market participants are required to be vigilant of the Bitcoin (BTC) price action for the next couple of days, which may demonstrate an entrancing price action.