April 2, 2024
Bitcoin's at $65,782, Bull Market Metrics Reset Amid 7% April Dip
Bitcoin price today

Bitcoin’s at $65,782, Bull Market Metrics Reset Amid 7% April Dip

Tuesday, April 2, 2024: Bitcoin Price is $65,782, experiencing a 5% drop in a single hourly candle. Bitcoin has seen a 7% decline in April, prompting a retest of support levels, which appears to have a calming effect on overheated markets. The recent drop triggered a major liquidation event, totaling $400 million for Bitcoin and altcoins combined.

Per CoinGlass data, funding rates began turning negative as prices declined. Popular trader Jelle remarked on the situation, noting, “BTC & ETH margined contracts already into the negatives. All leverage must be destroyed before price discovery.”

BTC/USD 1-hour chart. Source: TradingView

Observations and Insights

In its “Asia Morning Color” market updates, trading firm QCP Capital highlighted the significant shift in the funding landscape. The firm noted, “The speed of the move was due to large liquidations on retail-heavy exchanges like Binance which saw perp funding rates go from as high as 77% to flat.” It also pointed out that “the move brings spot prices right back into the middle of the 60-72k range.”

Crypto funding rate heatmap (screenshot). Source: CoinGlass

While perp funding rates have compressed, the forward curve remains elevated, leading to questions about whether this move will bring the entire curve down.

Technical Analysis and Indicators

BTC/USD annotated chart with Bollinger Bands data. Source: Matthew Hyland/X

Bitcoin’s relative strength index (RSI) readings on daily timeframes are back at the 50 midpoint, which is crucial during uptrends. Bitcoin typically performs strongest with an RSI above 70, signaling an “overbought” condition.

Regarding volatility, Bollinger Bands on daily timeframes suggest a potential pre-breakout phase for BTC/USD. Analyst Matthew Hyland noted similarities to February, stating, “Daily Bollinger Bands continue to tighten to levels not seen since the move started from $45k.” In late December 2023, reports indicated that both RSI and Bollinger Bands signaled a bull market acceleration.

Image by Miloslav Hamřík from Pixabay

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