Bitcoin traders are closely monitoring the market as significant bid liquidity approaches the current trading range above $60,000. Recent data from CoinGlass indicates that the largest concentrations of bids now sit at $61,200, $62,200, and $62,800, signaling fresh battlegrounds for bullish traders.
Prominent crypto analyst Shelby has recently indicated a bearish potential for Bitcoin in his post on the X platform. Concurrently, negative funding rates have surfaced for the first time since October 2023, suggesting a shift in trader sentiment from the optimistic tones observed during March’s record highs.
Renowned crypto analyst Daan Crypto pointed out in a recent X post that the funding rate heatmap from the past six months shows an overheated market in March. This trend suggests that the market is set up for a potential downward correction, aligning with the growing caution among traders.
Bitcoin’s current trajectory is veering towards the downside, with the price recently recorded at $63,117, marking a slight decrease of 0.28% over the last 24 hours and a more substantial 8.41% drop over the last. Despite minor gains on April 16, Bitcoin still trails significantly behind its 2021 high of $69,000, and analysts predict further corrections may be imminent.
According to data from IntoTheBlock, Bitcoin is currently positioned on relatively weak support below $63,500, which contrasts sharply with stronger resistance levels above this mark. A daily candlestick close below this threshold could lead to a further drop towards $60,771 and possibly down to the $60,000 psychological level.
The Relative Strength Index (RSI) is currently at 42, reinforcing the bearish outlook suggested by other market indicators. This lower RSI indicates a market that still leans towards a bearish bias despite some trading within the established wide range since March.
Despite the recent downturn in the market, there is still a possibility for bullish strategies if conditions improve. Bitcoin has been trading within a wide range since reaching its all-time high of $73,835 on March 14. If bullish investors gain momentum, they may attempt to drive the price upwards towards $65,000 and beyond to challenge the resistance at $70,000.
The potential for Bitcoin to ascend toward and possibly surpass its previous all-time high remains contingent on overcoming substantial market resistance. Should the bulls push past these challenges, a move back to the all-time high at $73,835 could result in total gains of up to 16%, offering a glimmer of optimism in a predominantly uncertain market.
