Bitcoin Traders Eye Price Rise as Market Cool Down Signals Potential Upswing
Summary:
Bitcoin (BTC) traders are pushing for price growth as bid liquidity edges closer to the active trading range above $60,000. After liquidating a sizable portion of longs this week, Bitcoin is yet to regain balance, fostering the threat of another decline. The negative funding period observed for the first time since October 2023 indicates a cooling market. While the funding rates are back in the positive domain, it marks a relative calming down of trading exuberance.
Bitcoin (BTC) traders are advocating for a rise in BTC price as liquidity creates new challenges for the bulls. The monitoring platform CoinGlass reveals a swing in bid liquidity closer to the prevalent trading range above $60,000 on April 17. An appreciable portion of longs has been liquidated by Bitcoin this week, sweeping off hundreds of millions of dollars in positions via an abrupt retracement. The equilibrium has yet to be restored by bulls, with BTC/USD hovering around $63,000 and still risking another drop. Existing order book data indicate that the bids are currently being placed slightly below the spot price aiming to pull the market lower. Keith Alan, co-founder of trading assistant Material Indicators, suggests this action is ultimately therapeutic for the market, priming it for an upward bounce. Recent history shows taking bids often precedes a run into overhead resistance, he highlighted in video analysis uploaded on X (formerly Twitter) on April 16. Per CoinGlass, the most significant bid concentrations in the past 24 hours are found at $61,200, $62,200, and $62,800. Bitcoin traders' sentiments are reflected in the return to negative funding rates, a first since October 2023. Marking a divergence from the recent weeks and particularly the time around the record highs of March, funding now signals a bearish sentiment with shorts disbursing longs. Noted trader Daan Crypto Trades pointed out in a response on X that March was largely very heated in comparison to the remaining period in the past six months, which he commented is typical when prices are near all-time highs and can result in occasional leverage flushes, like the recent one. Trading suite Decentrader observed that while the period of negative funding was short-lived, it indicated a calming derivatives trading fervor. It concluded in its own X thread that while funding rates had returned to a positive state, the overall mood had noticeably relaxed. This piece isn't an investment guide or recommendation. Every investment and trading action carries risks, and readers are advised to perform their own research before making decisions.
Published At
4/17/2024 12:21:46 PM
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