Between mid-April and May, the cryptocurrency market experienced fatigue in price action, largely attributed to derivative market consolidation, despite positive macro news within the industry.
During this period, funding rates indicated support for the bullish trading range. Moreover, the recent surge above the 50-day Moving Average by open interest values indicates a growing trend of opening leverage long positions. Conversely, stable coin exchange reserve ratios remained flat, suggesting that leveraged position size continue to be relatively minor.
Additionally, the short-term holder Spent Output Profit Ratio (SOPR) reflects increased FOMO (Fear of Missing Out) money following the All-Time High (ATH).
I do believe a catalyst will be needed to drive price action higher over the near term horizon, however long leveraged traders will target $76,000, while short positions will target $63,000 under the present conditions.
Written by ShivenMoodley