The cryptocurrency market has faced one of the worst dips since the beginning of the month, with around $500 million in various assets being liquidated in a matter of hours. For now, Bitcoin's performance stabilized somewhat, which should potentially push the buy the dip sentiment forward.
The most recent price movement of Bitcoin indicates that it is testing important support levels at approximately $65,000. Significant support lines are being provided by the 50-day EMA and the 200-day EMA, and a hold above these levels may signal stabilization. There is a chance that investors can take advantage of the current dip to add more Bitcoin because this consolidation phase frequently precedes potential recoveries.
#BTCFunding rates are slightly positive, showing bullish .Buy the dip.👉https://t.co/iyLrhuoty0 pic.twitter.com/YFfCsGMTni
— CoinGlass (@coinglass_com) June 18, 2024
More information can be obtained by examining funding rates on different exchanges. Positive funding rates exist for popular cryptocurrencies like Ethereum and Solana, which traders are prepared to pay a premium for in order to hold onto their long positions.
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When it is positive, this measure becomes a key gauge of market sentiment and frequently suggests an upcoming bullish reversal. Furthermore, a significant number of long positions — 407. 91 million over the course of the last day — are being liquidated, according to the liquidation heatmap.
Although this may appear unfavorable, at first, it frequently hints at a market reset in which excess leverage is eliminated to make room for a more steady upward trend, given that there is potential for upward movement without the possibility of sudden overbought conditions. For now, the RSI for Bitcoin is circling the neutral zone. In spite of the recent market decline, this and the positive funding rates suggest that there may be room for optimism. However, it would have been better for the asset if the RSI were around the reversal zone.
