Bitcoin traders are eagerly anticipating an increase in the price of BTC as bid liquidity starts to accumulate around the $60,000 mark. Recently, a significant number of long positions were liquidated, resulting in a decline in BTC price. Bullish investors have yet to regain control, and BTC/USD remains stuck at around $63,000, putting it at risk of further decline. The current order book data reveals that bids are being placed just below the spot price, a strategy employed to push the market lower. According to Keith Alan, co-founder of Material Indicators, this is a necessary process for the market to experience an upward movement.
Historically, an increase in bid liquidity has signaled an upcoming breakout from resistance levels. CoinGlass data indicates that there are significant concentrations of bids at $61,200, $62,200, and $62,800 within the past 24 hours. The funding rates for Bitcoin have recently turned negative for the first time since October 2023. This shift in sentiment signifies that shorts are paying longs, reflecting a bearish outlook.
The negative funding rates are indicative of a cooling environment in the derivatives trading market. Despite this period being short-lived, it suggests a decrease in exuberance among traders. Decentrader, a trading suite, commented that the return to positive funding rates is a sign that the enthusiasm for derivatives trading is calming down.
Bitcoin traders are closely observing bid liquidity and hoping for an upward movement in the BTC price. Recent liquidation of long positions has left the market in a precarious situation, with BTC/USD struggling to break through resistance levels. The concentrations of bids near key levels indicate potential support for an upcoming breakout. The shift in funding rates from positive to negative suggests a decline in optimism among traders. The return to positive rates signifies a more stable trading environment.
I can’t believe this period of decrease in exuberance among traders. It’s affecting the market in a negative way!
Great, just what we needed – more decline risks for BTC. When will it catch a break?
Can’t believe the BTC price is still stuck at $63,000! When will this ever break through resistance levels?
The concentration of bids at key levels isn’t enough to keep BTC from declining. It’s a tough market out there!