Bitcoin bids stack above $60K as hopes of a BTC price rebound build

Bitcoin (BTC) traders are demanding BTC price upside as liquidity sets up fresh battles for bulls.

The data obtained from monitoring resource CoinGlass indicates that bids for resources are approaching the active trading zone above $60,000 as of April 17.

BTC price liquidity thickens near key support

This week, Bitcoin has caused a significant sell-off among investors holding long positions, resulting in the rapid withdrawal of hundreds of millions of dollars from these positions.

The price of Bitcoin (BTC) hovering around $63,000 against the US Dollar (USD) has not been rectified by bulls yet. A potential new decline remains a concern.

The most recent order book information indicates that buyers are trying to secure deals slightly under the current market price, which is a typical strategy aimed at pushing down the market further.

According to Keith Alan, the co-founder of Material Indicators, this action provides relief for a market seeking an upturn. Based on his analysis in a video posted on X (previously Twitter) on April 16, bids have typically signaled the beginning of a rally leading to resistance levels.

He expressed a desire to observe increased bid liquidity in the market, similar to historical levels, before attempting a move that could potentially be successful in breaking through the current resistance.

Based on information from CoinGlass, the most frequent bid prices in the past 24 hours are at $61,200, $62,200, and $62,800.

Bitcoin bids stack above $60K as hopes of a BTC price rebound build

Bitcoin funding rates briefly flip negative

Traders’ outlook has shifted back to pessimistic, as indicated by the reappearance of negative funding rates for the first time since October 2023.

Recently, there has been a significant shift from the past few weeks, particularly around March’s record highs. Now, investors are once again borrowing stock to sell in anticipation of a price drop, while those who hold long positions are being paid to lend their shares. In simpler terms, the market sentiment has turned bearish and short selling is back in fashion.

Based on the six-month funding rate chart, it’s clear that March stood out as unusually heated in comparison to other months. (Paraphrased from “Looking at the funding rate heatmap from the past 6 months, you can see how March was generally very overheated compared to the rest,” by Daan Crypto Trades)

“This is normal when prices are trading near new all time highs but also result in the occasional flush of leverage. We just had such a flush.”

Bitcoin bids stack above $60K as hopes of a BTC price rebound build

Decentrader’s trading platform observed a brief spell of negative funding, signaling a potential shift towards a more subdued market condition.

In their X thread, they noted that funding rates have turned positive once more, indicating that the fervor in derivatives trading may be starting to subside.

Bitcoin bids stack above $60K as hopes of a BTC price rebound build

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2024-04-17 12:27