Bitcoin Bulls are on cloud nine? Analysts identify where the risks lie.

After an almost excellent start to July, Bitcoin has performed even more impressively in recent days. This leading cryptocurrency, after a brief sideways phase at the beginning of the week, has reached a new all-time high valuation with a price close to 119,000 dollars. It is no surprise that the Bitcoin market is experiencing a wave of optimism — a conclusion that is still strongly reinforced by the latest blockchain revelations. Bitcoin Market Psychology Shifts Towards Bullish Trend In a post on July 11 on the social media platform X, the cryptocurrency analysis company Alphractal conducted an in-depth study of the current price movements of Bitcoin, providing insights into the future trajectory of this cryptocurrency. Observing on the company's chain regarding the data of the cumulative liquidation heat map (7 date ), visualizing the price areas with high long-term or short-term liquidation concentration over a 7-day period, and the cumulative liquidation heat map (1 month ) also performs a similar function, except that this map includes a monthly time frame. After the recent surge in Bitcoin's price to a new all-time high, all the leveraged short sellers have been wiped out from the market. Supported by the short-selling wave, which often occurs after large liquidation events, this leading cryptocurrency continues to maintain its strong upward momentum and continues to soar.

According to Alphractal, the aggregate liquidation levels across different time frames currently show that most of the existing leveraged positions are betting on the price of Bitcoin. As the market continues to grow, investor sentiment will shift to a more positive outlook, which could encourage more traders to open long positions in the BTC futures market. However, Alphractal warns against recklessly participating in the current bull market. "If for any reason, the price drops to $10,000 down to the $107,000 region, then that could be the time when buyers face mass liquidation," this analysis company stated. The company further explained that the sharp decline in Bitcoin prices would negatively impact the market's optimistic sentiment. On a positive note, Alphractal also stated that this event could bring new accumulation opportunities in the near future. Still optimistic about the market, the drop of 10,000 dollars in Bitcoin price could lead to a phenomenon known as Long squeeze, when the price of Bitcoin continues to drop sharply with momentum. A long squeeze usually occurs when the price of a cryptocurrency (, in this case Bitcoin), drops, forcing traders holding long positions to sell their assets to cut losses or break even. This contributes to the current downward momentum and pushes the price of BTC even lower. Amid the current price increase of Bitcoin, Alphractal has finally advised traders to use leverage wisely and cautiously, as the next market move lies in the unpredictable zone of $BTC. {spot}(BTCUSDT)