💥💥💥 #bitcoin☀️ Encounters First Support Level Amid Short-Term Decline
Bitcoin ($BTC ) is currently testing its first major support level after a recent decline, according to data from CryptoQuant. This coincides with significant market liquidations, offering insights into the current sentiment among traders.
Bitcoin Stabilizes After Retesting $58,250 Liquidation Zone
The BTC Longs/Shorts Liquidated Delta, an indicator from CryptoQuant, highlights the difference between liquidated long & short positions on Bitcoin. This metric sheds light on market trends by showing which side—longs (bearish) or shorts (bullish)—is more dominant.
Recent data reveals that Bitcoin has retested the initial long liquidation zone around $58,250, where it appears to have found some support. This stabilization suggests that some traders might be waiting for this level to enter the market following the recent downturn.
Market Awaits Bitcoin’s Next Move as Funding Rates Turn Negative
- Meanwhile, funding rates, which reflect the cost of holding long or short positions, have turned slightly negative, hovering around -0.00%. A negative funding rate indicates that retail traders are more inclined to open short positions, anticipating a potential further decline in Bitcoin’s price.
- These factors paint a complex picture of the current market conditions. On one hand, the consolidation around the $58,250 support level may suggest that a base is forming after the recent sell-off. On the other hand, the negative funding rate & increased interest in short positions indicate that many traders are still expecting a drop in Bitcoin’s price.
- As Bitcoin hovers around this key support level, market participants will be closely watching for signs of either a bounce back or a further decline. The outcome of this delicate balance between bullish & bearish forces will likely determine Bitcoin’s short-term price direction. These observations are based on the latest data from CryptoQuant.
Source - blockchainreporter.net
