Bitcoin’s [BTC] price struggles continue as analysts warn of further drop
Following the sharp decline in Bitcoin’s [BTC] price in the early trading hours of 3 March, long liquidations soared to a seven-month high, data from Coinglass showed.
The drop in value was triggered by apprehension and uncertainty regarding Silvergate Capital , a financial institution recognized for its supportive attitude toward digital currencies.
Source: Coinglass
According to CryptoQuant analyst caueconomy, these long liquidations were the third such event since the Terra/LUNA crash in May 2022 and the second following the fallout of cryptocurrency FTX in November 2022.
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The pseudonymous analyst found further that the sharp decline in the market was caused by a massive spot sale on most exchanges, particularly on Binance, where many buyers had positioned contracts.
Source: CryptoQuant
With BTC struggling to reclaim the $25,000 price mark, another CryptoQuant analyst with the pseudonym CryptoOnchain has opined that the king coin’s price might drop further.
According to CryptoOnchain, while short-term holders have been buying BTC, long-term holders have not supported the recent price rise.
To benefit from the price growth so far this year, an on-chain assessment of BTC’s price revealed a surge in coin distribution by these short-term holders as well.
BTC’s exchange inflow by 1-3 months holders was spotted at its highest value since June 2022, CryptoOnchain noted.
Source: CryptoQuant
Moreover, the crypto market has seen an increase in the outflow of stablecoins from exchanges, which cannot sustain the current price increase and could potentially lead to a further decrease in prices, the analyst added.
Another analyst Joao Wedson warned investors to gear
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