• 26 May, 2024
Markets News

Bitcoin Faces Turbulent Market as Bids Cluster and Analysts Signal Caution

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.

Source: Coinglass

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.

Source: Image by Daan Crypto

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.

Source: TradingView

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.

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