Bitcoin traders are eagerly anticipating a price increase as liquidity levels create new challenges for bulls. According to data from monitoring resource CoinGlass, bid liquidity is moving closer to the active trading range above $60,000 on April 17.
Bitcoin has recently liquidated a significant portion of long positions, with a sudden retracement resulting in the loss of hundreds of millions of dollars. However, bulls have yet to regain their footing, and BTC/USD remains stuck around $63,000, with the potential for a further decline.
The latest order book data reveals that bids are currently attempting to be filled just below the spot price, a strategy often used to push the market lower. Keith Alan, co-founder of trading resource Material Indicators, explains that this practice is ultimately beneficial for the market as it sets the stage for an upward bounce. Historically, taking bids has preceded a surge in overhead resistance.
CoinGlass reports that the largest concentrations of bids in the past 24 hours are at $61,200, $62,200, and $62,800.
In a significant shift, funding rates for Bitcoin have turned negative for the first time since October 2023, indicating a bearish sentiment among traders. This is a departure from the recent period around March’s all-time highs when funding rates were positive.
Trader Daan Crypto Trades noted that March was particularly overheated compared to the preceding months. DecenTrader, a trading suite, commented that while the negative funding period was short-lived, it reflected a cooling down of the derivatives trading environment.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.