According to technical analyst InspoCrypto, the current state of the Bitcoin (BTC) market reflects mixed sentiment and potential for volatility, particularly as the Bitcoin price hovers between $63,000 and the $64,000 mark.
Bitcoin Price Analysis
InspoCrypto’s indicates that the maximum slippage recorded was 16.5, which points to moderate liquidity in the market.
A volume delta of 415.848 million suggests a cumulative imbalance between buy and sell orders, with increased buying pressure supporting the recent price rise. This indicates that liquidity is sufficient to prevent sudden price shocks.
Hyblock Capital’s heatmap analysis reveals critical liquidation levels based on traders’ leverage positions. Notably, substantial liquidity exists around the $60,000 and $64,000 zones, indicating potential resistance just above the $64,500 mark due to a heavy cluster of short liquidations.
Conversely, long liquidations are concentrated around $61,000, which could serve as a significant support level for the Bitcoin price. A breach of $64,000 may trigger short liquidations, potentially driving prices higher, while a drop below $61,000 could lead to cascading long liquidations.
Examining the distribution of open interest (OI), significant concentrations are found in the $64,200 to $64,400 range. This suggests strong trader positioning, indicating that a substantial move away from this zone could lead to increased volatility.
Additionally, the funding rate stands at -12.678%, indicating a dominant short position in the market, with shorts effectively paying to maintain their positions.
Whales Favor Long Positions
The current bid-ask ratio is at 38.618%, reflecting a slightly ask-heavy market, which indicates that selling pressure outweighs buying demand. This sentiment is further supported by the average leverage delta, which is at -6.67, showing that short traders are using more leverage than longs, reinforcing a bearish outlook.
However, the volume delta is positive at 4.60 million, indicating a net buying imbalance that could support upward momentum.
The Whale vs. Retail Delta stands at 56.681%, suggesting that whales are slightly longer compared to retail traders. This minor bullish sentiment from larger players could influence market dynamics as whales typically have a greater market impact.
Overall, the analyst contends that the Bitcoin price is exhibiting mixed signals. The negative funding rate and higher short leverage indicate a potential downward move, but significant open interest and positive volume delta suggest that a breakout in either direction could be imminent.
InspoCrypto suggests that in the next 24 hours, traders should prepare for volatility, particularly if liquidation zones around $61,000 or $64,500 are triggered.
By the end of the week, it is expected that the Bitcoin price could either break resistance near $64,500 or test support at $61,000. If funding rates shift to positive, further upward momentum may follow.
At the time of writing, the Bitcoin price stands at $63,370, recording minor losses of 0.3% compared to Tuesday’s trading session.
Featured image from DALL-E, chart from TradingView.com