May 24, 2024
Bitcoin's at $62,832, Bids Near $60K Signal Recovery Hope
Bitcoin price today

Bitcoin’s at $62,832, Bids Near $60K Signal Recovery Hope

Wednesday, April 17, 2024: Bitcoin price stands at $62,832, BTC traders are closely monitoring the cryptocurrency’s price action, with bid liquidity indicating potential upside movement. Currently, the ticker sits around $62K, with bids aligning closer to the $60,000 mark on April 17, as per data from CoinGlass.

Bitcoin liquidation heatmap (screenshot). Source: CoinGlass

Liquidity Dynamics and Trader Sentiment

This week, Bitcoin experienced the liquidation of a significant portion of long positions, resulting in a snap retracement that flushed out hundreds of millions of dollars in positions. However, bulls are yet to regain control, leaving BTC/USD hovering around $63,000, while still posing a risk of further downside.

The latest order book data reveals bids attempting to get filled just below the current spot price, a tactic often employed to lure the market lower. This activity is viewed as cathartic by Keith Alan, co-founder of trading resource Material Indicators, who suggests that such movements historically precede a move into overhead resistance.

“What we want to see ultimately before we get a move that can have a better chance of breaking through this up here is more bid liquidity — something more akin to what we have seen historically,” Alan commented on an order book chart in a video analysis uploaded to X on April 16.

Bids and Trader Sentiment Analysis

CoinGlass data indicates that the most significant concentrations of bids over the past 24 hours are at $61,200, $62,200, and $62,800, reflecting trader interest at these price levels.

Meanwhile, trader sentiment has shifted to negative funding rates for the first time since October 2023. This contrasts sharply with recent weeks, particularly around March’s all-time highs, where funding rates favored bullish sentiment, with shorts paying longs.

Bitcoin funding rates heatmap. Source: Daan Crypto Trades/X

Popular trader Daan Crypto Trades observed, “Looking at the funding rate heatmap from the past 6 months, you can see how March was generally very overheated compared to the rest… We just had such a flush.”

Market Analysis and Cooling Environment

DecenTrader, a trading suite, noted that the negative funding period, although brief, signals an overall cooling in the derivatives trading environment. While funding rates have returned to positive territory, the shift suggests a reduction in exuberance among derivatives traders. DecenTrader concluded in its own X thread on the day. Funding rates are back positive again but it was a sign that derivatives trading exuberance is calming down.

Bitcoin weighted funding rates chart. Source: Decentrader/X

Image by freepik

Related posts

Bitcoin Price Today is $62,318 as Analysts Debate Cycle Peak

Anna Garcia

Bitcoin’s at $63,279, Dips Despite Decrease in GBTC Outflows

Anna Garcia

Bitcoin’s at $70,783, Grayscale ETF Outflows Hit an All-Time Low

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.