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According to technical analyst InspoCrypto, the current state of the Bitcoin (BTC) market shows mixed emotions and volatility, especially since the price of Bitcoin hovers between $63,000 and the $64,000 mark.
Bitcoin Price Analysis
InspoCrypto’s analysis shows that the highest volatility recorded was 16.5, which points to the middle income in the market.
A delta volume of 415.848 million suggests a growing imbalance between buy and sell orders, with increasing buying pressure supporting recent price increases. This shows that liquidity is sufficient to prevent sudden price shocks.
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Hyblock Capital’s heat map analysis reveals a critical completion rates based on the profit positions of traders. Notably, bullishness is present around the $60,000 and $64,000 levels, indicating potential resistance just above the $64,500 mark due to heavy short selling.
On the other hand, long selling is focused around $61,000, which can serve as an important support level for Bitcoin price. A breach of $64,000 could trigger a short selloff, which could push prices higher, while a break below $61,000 could lead to a long selloff.
It examines the distribution of open interest (OI), key focus is found in the $64,200 to $64,400 range. This suggests a strong position for traders, indicating that moving away from this area can lead to increased volatility.
In addition, the support rate stands at -12.678%, indicating a dominant short position in the market, with shorts effectively paying to maintain their positions.
Whales Like Long Positions
The current bid-ask ratio is 38.618%, indicating a very difficult market, indicating that sales pressure exceeds the need to buy. This sentiment is also supported by the average delta of leverage, at -6.67, which shows that short traders use more power than long ones, which reinforces the bearish view.
However, the delta volume is positive at 4.60 million, indicating a buying imbalance that may support higher momentum.
Whale vs. Retail Delta stands at 56.681%, suggesting that the whales are slightly long relative to retail traders. This is small bullish sentiment from major players can affect market volatility as whales tend to have a large impact on the market.
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Overall, the analyst argues that the price of Bitcoin is showing mixed signals. A negative funding level and a high short ratio indicate a potential downside, but significant open interest and positive delta volume suggest that Get out on both sides it can be close.
InspoCrypto suggests that in the next 24 hours, traders should prepare for volatility, especially if the closing points around $61,000 or $64,500 are calculated.
At the end of the week, it is expected that the price of Bitcoin may break the resistance near $64,500 or test the support at $61,000. If currency rates turn positive, more momentum may follow.
At the time of writing, the price of Bitcoin stands at $63,370, recording a small loss of 0.3% compared to the trading session on Tuesday.
Featured image from DALL-E, chart from TradingView.com