As a seasoned crypto investor with battle-hardened nerves and a portfolio that’s weathered more market storms than a lighthouse, I find myself standing at the precipice of uncertainty once again. The latest dance by Bitcoin, the crypto heavyweight, has been an interesting spectacle to watch.
Over the past day, Bitcoin (BTC), often referred to as the crypto monarch, has maintained its position above the essential $60,000 support level, following a notable 25% drop earlier this month that took it down to around $49,000.
Despite Bitcoin’s persistent effort to rise in value, it hasn’t managed to break through higher resistance barriers yet. These obstacles, as seen by technical experts, are crucial for another attempt at reaching the record-breaking highs that were hit in March.
What On-Chain Metrics Reveal
Based on a recent post on social media platform X (previously known as Twitter), technical analyst Inspo Crypto has pointed out the cautious feelings among options traders. Although they stay optimistic, they also safeguard against possible downside dangers, implying a forecast of a potential market correction or negative news.
The analyst additionally argues that the demand to sell, particularly at higher prices, has been strong. The increase in price on Wednesday mainly sparked sell orders, causing the unwinding of heavily-leveraged long positions.
By examining the market details more closely, it appears that the options market presents a combined perspective that leans somewhat optimistic, yet exhibits bullish tendencies. However, the 25-Delta Skew suggests a degree of ambiguity, especially as upcoming economic events cause traders to exercise caution due to their potential impact.
In the futures market, the data shows short-term bullish momentum but with increased volatility. The rising open interest suggests more market participation, yet the liquidation heatmap highlights the risks of sudden price swings.
Bitcoin Breakout To $63,000 Or Consolidation At $60,000?
Looking towards immediate trading (the spot market) and studying the market trends (technical analysis), the information suggests a surging positive trend (bullish momentum). However, the cryptocurrency is encountering substantial opposition at price points between $61,300 and $61,500.
Despite the volume being present, it seems too low to trigger a major surge, and the order book information suggests there’s intense selling pressure at these price points.
According to Inspo Crypto’s analysis, the general feeling among traders leans slightly towards optimism, rated at 5.5 out of 10. Traders are showing a degree of cautious optimism, but there are definite indications of hesitation and potential market fluctuations.
Over the next 24 hours, it’s expected that Bitcoin could keep trying to surpass the barrier between $61,300 and $61,500.
It’s doubtful that we’ll see a real surge without a significant boost in trading activity. If the current resistance persists, a decline back to around $60,000 or possibly even $59,500 could occur instead.
For the remainder of this week, if Bitcoin successfully surpasses the $61,500 barrier with rising trading activity, it might push up to the range of $62,500 to $63,000. Conversely, if it fails to do so and trading volume remains low or selling pressure continues, we can expect Bitcoin to stabilize within the range of $59,500 to $61,000 instead.
On a midweek shift, BTC surpassed $61,700 for the first time in almost two weeks, but it has since dropped to around $60,000. Nevertheless, the value of Bitcoin has increased by 1.8% over the last day.
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2024-08-22 19:17