• 15 June, 2024
News

Coinbase Bid Influences Bitcoin’s Market Strength: Report

The cryptocurrency market has once again showcased its dynamic nature, with Bitcoin (BTC) taking center stage in the recent trading frenzy. Amidst the market’s constant ebb and flow, BTC has demonstrated remarkable resilience, with significant passive asks being absorbed in the $36,000 range. 

Consequently, the price of Bitcoin has seen a notable increase to $36,590.41 currently. This uptick is not a standalone event but rather a part of a 3.73% increase over the past week, pushing the market capitalization to a staggering $714.87 billion.

As highlighted by CrediBULL Crypto, an analytic platform, the market’s mechanics have been particularly intriguing. Open interest (OI) has held high despite the pressures, and a consistent bid from Coinbase has underpinned the asset’s climb. 

However, a notable seller, who previously offloaded over 4,000 BTC in this price region, faces the risk of being caught out if the uptrend persists. Additionally, the slight decrease in funding rates indicates that the increase in OI may not solely be due to new long positions.

The market’s ability to digest large sell orders without a significant price drop hints at an underlying strength. Nevertheless, the bears still have a card up their sleeve with the potential formation of a triple bearish divergence on higher timeframes. Should this technical formation be invalidated by a breakout to the upside, the current bearish sentiment may swiftly shift.

The next 12-24 hours are critical for the market’s direction. Hence, all eyes are on the continuous bid support from Coinbase and the activity on Binance, which has remained notably muted. Any change in these factors could signal a shift in market dynamics.

Furthermore, the recent return of OI to levels seen before the short squeeze, combined with a rise in perpetual contract volume delta (perp CVD), could suggest a buildup of long positions that may be vulnerable to a price correction.

Bitcoin’s market is at a crossroads, with potential vulnerabilities for both bulls and bears. Traders are advised to monitor the situation closely, as the forthcoming market movements promise to be significant. Significantly, understanCoinbase Bidding these nuanced market signals could provide keen insights into Bitcoin’s short-term trajectory.

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