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As the broader cryptocurrency market is experiencing significant gains following Reducing the rate of the Federal ReserveBitcoin (BTC) hit $63,670 on Thursday, marking its biggest rally since late August. This outbreak has sparked more interest from both traders and institutional players, leading to various positions within the market.
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According to the latter posted on social media platform X (formerly Twitter) by technical analyst InspoCrypto, the recent price action of the Binance BTC/USDT futures chart shows a strong upward trend, where Bitcoin breaks the key resistance levels around $60,000.
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The volume associated with this price increase remains strong, according to the analyst, which shows the strong support that continues. bullish movement. InspoCrypto suggests that although the market is currently in a bullish phase with no immediate signs of reversal, potential resistance is expected around $64,000 to $65,000.
Data from Hyblock Capital’s heat map, reveals a significant difference in position between large traders (whales) and retail investors. The heat maps show an increase in long positions among the retail traders, especially in the $62,500 to $63,500 range.
Conversely, whales have been accumulating short positions below $60,000, suggesting a sense of caution among institutional players despite the short-term optimism among retail investors towards the largest cryptocurrency in the market.
Bitcoin Faces Key Elimination Levels At $60,000 And $64,000
InspoCrypto also highlights that open interest in the futures market has also been increasing along with the price of Bitcoin, especially in the range of $62,000 to $63,500, which shows growing confidence in the market. bullish trend.
Additionally, the current funding level is positive, suggesting that long positions are common and traders are willing to pay a premium to maintain those positions. However, the analyst warns that continued high currency rates may result market adjustment as traders rebalance their positions.
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Volume remains an important indicator of market strength, supporting a bullish rally as it passes the $63,000 mark. Notably, the delta volume is positive, indicating more buying pressure than selling. However, there is something remarkable completion rates at $60,000 and $64,000, which could cause volatility if the market tests these price points.
Overall, InspoCrypto argues that market sentiment is moderately bullish, rated 7 out of 10. While traders seem confident and are taking more long positions, the accumulation of shorts by whales indicates a possible cautious stance.
At the time of writing, the industry’s biggest digital asset is trading at $63,300 for the first time since late August. This represents a 5% increase over the past 24 hours, which corresponds to gains of 8% and 12% over the past seven and fourteen days, respectively.
Featured image from DALL-E, chart from TradingView.com