Category Archives: Bitcoin
2 key Bitcoin indicators have ‘cooled off’ Why it could be bullish – Cointelegraph
Two key Bitcoin trading indicators the funding rate and three-month annualized basis rate could suggest the price is on track to go upward soon, according to a crypto analyst.
Looks like were consolidating before the next leg up, Reflexivity Research co-founder Will Clemente wrote in a May 7 post on X, explaining that Bitcoins funding and basis rates have cooled off after briefly dipping to negative readings.
The Bitcoin (BTC)funding rate is often used to track overall trader sentiment for the cryptocurrency market. Exchanges use this rate to balance out traders entering long positions with those opting for short positions to mitigate the risk of overexposure.
When long-position traders take more dominant positions, the funding rate turns positive, indicating their confidence in Bitcoins price increasing.
At the time of writing, the open interest-weighted funding rate is 0.0091%, having recovered from a negative rate of -0.0050% on May 4, according to CoinGlass data.
Sounds like the calm before the storm, saidpseudonymous crypto commentator Crypto Empire.
The Bitcoin funding rates still remaining this low, while Bitcoin is bouncing makes me feel extremely bullish, echoed pseudonymous crypto trader Mister Crypto to their 98,000 X followers.
The shift in the funding rate over the four-day period was also mirrored by a slight increase in Bitcoins price, which rose 1.11% to $62,361, per CoinMarketCap data.
Related: Bitcoin trader flags key levels as BTC price attacks $64K liquidity
However, liquidation data contradicts this, suggesting that futures traders are still leaning bearish and anticipate a near-term price drop.
A 3.5% rise in price to the key $65,000 level could liquidate $1.36 billion in short positions, whereas a 3.5% drop to $60,500 would only wipe out $650 million in long positions.
Meanwhile, some traders note that Bitcoins annualized basis rate has increased to the higher end of the 510% neutral range on major exchanges such as Binance, OKX and Deribit.
The annualized basis rate is a way to measure the cost difference between a Bitcoin futures contract and the actual price of Bitcoin.
Traders often view rates above 10% as a neutral-to-bullish signal.
Magazine: Buy altcoins now, but sell before mid-2025: Charles Edwards, X Hall of Flame
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Originally posted here:
2 key Bitcoin indicators have 'cooled off' Why it could be bullish - Cointelegraph
Bitcoin price today: slips to $62k as regulatory jitters, rate fears weigh – Investing.com
Investing.com-- price slid on Wednesday, further reversing a rebound seen over the weekend as persistent concerns over more regulatory scrutiny against the cryptocurrency industry kept traders largely wary of buying in.
Broader crypto prices were also pressured by uncertainty over U.S. interest rates, after several Federal Reserve officials signaled this week that the central bank was more likely to keep rates unchanged in 2024. The dollar rebounded from recent losses after their comments.
Bitcoin fell 1.8% in the past 24 hours to $62,336.7 by 08:21 ET (12:21 GMT). The worlds largest cryptocurrency remained comfortably within a trading range seen for most of the past two months, as momentum in the token waned after it hit a record high in March.
Capital flows data released earlier this week also showed that crypto investment products, particularly Bitcoin, saw a third straight week of steep outflows as hype over exchange-traded funds launched earlier this year ran dry.
A report released earlier this week showed that over 90% of transactions in stablecoins- which are an important aspect of crypto trade- were inorganic and not from real users, raising questions over just how much retail demand there actually was for crypto.
The report also raised concerns over more regulatory action against stablecoin operators, specifically , which is the largest of the lot.
In instances of actual regulatory action, trading app Robinhood Markets Inc (NASDAQ:) said it was facing potential regulatory action from the Securities and Exchange Commission over the nature of crypto tokens traded on its platforms. The SEC has long argued that crypto tokens are securities, and is currently embroiled in legal battles with XRP issuer and crypto exchange Coinbase (NASDAQ:) over the matter.
The SEC is also reportedly investigating world no. 2 crypto over it potentially being a security, and had this week postponed a decision to approve spot-traded Ethereum ETFs for U.S. markets to July.
But the regulator is widely expected to reject applications for the ETF.
Broader cryptocurrency prices retreated, also coming under pressure from a resurgence in the dollar as Federal Reserve officials said the central bank was likely to leave interest rates unchanged this year.
Ethereum fell 2.5% to $2,996.41, while and XRP fell 6.1% and 2.7%, respectively.
High for longer U.S. rates bode poorly for crypto markets, given that the sector usually benefits from a low-rate, high-liquidity environment.
A Bitcoin price indicator known as volatility risk premium (VRP) currently indicates a relatively calm market environment ahead, which long-term investors might view positively, CoinDesk reported Wednesday.
The VRP measures the difference between an asset's option-implied volatility, which gauges expected price swings, and the realized volatility over time. This spread reflects the extra premium option sellers seek to offset the risks of future market uncertainty.
According to data from Bitfinex analysts, the one-month VRP has sharply declined from 15% to 2.5% following the Bitcoin blockchain's mining reward halving on April 20. The calculation relies on the difference between Volmex's bitcoin 30-day implied volatility index (BVIV) and the one-month realized volatility (VBRV).
"The significant narrowing of the VRP indicates a realignment of market expectations to a more stable and predictable environment post-halving," analysts at Bitfinex said in a note seen by CoinDesk.
"The market consensus seems to be that future volatility may be less than previously anticipated following the halving."
Put differently, uncertainty has diminished, and market participants anticipate more stable market conditions.
Continued here:
Bitcoin price today: slips to $62k as regulatory jitters, rate fears weigh - Investing.com
Bitcoin exchange inflows drop to 10-year lows after $74K all-time highs – Cointelegraph
Bitcoin (BTC) exchange inflows are plumbing lows not seen in nearly a decade, the latest data shows.
Figures from on-chain analytics platform CryptoQuant show daily BTC inflows declining significantly since Bitcoins $73,800 all-time highs.
Bitcoin traders are in no mood to keep coins available for quick sale on exchanges.
According to CryptoQuant, April and May 2024 have seen some of the lowest daily inflows to major exchange accounts in the past 10 years.
On April 20, when BTC/USD was around the same levels as at the time of writing, just 8,400 BTC flowed into exchanges.
The last time that such small flows were observed was when Bitcoin traded at less than $1,000 per coin.
CryptoQuant tracks a large number of both spot and derivative exchanges to compile the data.
The numbers reflect a significant shift in hodler sentiment this year as Bitcoin investment enters a new era of institutional involvement.
As Cointelegraph continues to report, appetite for increasing exposure to BTC has persisted despite short-term BTC price volatility including last weeks trip to $56,500.
Market observers continue to flag positive events tied to Bitcoin whale cohorts.
Related:Bitcoin trader flags key levels as BTC price attacks $64K liquidity
Whales in the range of 1k to 10k, which typically provide significant downward volatility to the market, have not been consistently participating in this current uptrend cycle, CryptoQuant contributor Mignolet wrote in one of its Quicktake research updates this week.
Mignolet referred to whale entities holding between 1,000 BTC and 10,000 BTC. An accompanying chart showed spent output age bands of on-chain transactions.
The post added that whales may not be willing to sell yet as the cycle has not ended.
There might be demand outside of exchanges, particularly in the OTC (over-the-counter) market, capable of absorbing large selling volumes even without deposits into exchanges post-ETF approval, Mignolet wrote.
Commenting on the current market landscape, however, Checkmate, the pseudonymous lead on-chain analyst at data firm Glassnode, said that the new spot Bitcoin exchange-traded funds were likely shaping the numbers.
Data around these entities is notoriously noisy, and I can almost guarantee that the big whale wallets youre watching are ETFs, and exchanges, he told followers in part of a post on X.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
More:
Bitcoin exchange inflows drop to 10-year lows after $74K all-time highs - Cointelegraph
Bitcoin distribution ‘danger zone’ over, analysts say – Cointelegraph
Bitcoins (BTC) price rose above the $65,000 mark on May 6 as analysts argued that the post-halvingdanger zone may be over, with more BTC upside on the way.
Bitcoins post-halving danger zoneis a three-week window after the halving, historically associated with downside volatility occurring below the reaccumulation range.
With Bitcoin rising above the current reaccumulation range of approximately $60,000, the post-halving danger zone may be over, according to popular crypto analyst Rekt Capital. He wrote in a May 6 post:
During the 2016 bull cycle, Bitcoin produced an 11% downside wick 21 days after the halving, which marked the beginning of the price reversal, noted Rekt Capital in a May 6 X post:
Meanwhile, Bitcoin analyst Willy Woo also expects higher BTC prices based on the volume-weighted average price (VWAP), a popular oscillator used by traders to determine the average asset price based on price action and volume.
Woo wrote in a May 6 X post:
Further showcasing a change in investor sentiment, the Crypto Fear & Greed Index rose to 71/100, signaling greed up from 43/100, or fear, on May 2.
Outflows from the 11 United States spot Bitcoin exchange-traded funds (ETFs) have contributed to Bitcoins correction. The U.S. ETFs recorded their highest week of outflows since launching, with nearly $900 million in net cumulative outflows over the past week, according to Dune data.
Related: Bitcoin enters new era as whales scoop up over 47K BTC during price pullback
Interestingly, data suggests that long-term holders (LTH) at the $70,000 price have finished selling to new investors. Thus, a new active accumulation phase could bestarting, according to CryptoQuant author Axel Adler Jr.s May 6 X post.
This can significantly reduce Bitcoins sell pressure, paving the way toward a gradual climb to new highs, according to Eitan Katz, the founder of Kima, a decentralized money transfer protocol. Katz told Cointelegraph:
However, Bitcoin could remain subdued in the short term, due to concerns over inflation and dampened expectations for rate cuts, according to Mithil Thakore, CEO of Velar, a Bitcoin-native liquidity protocol. Thakore told Cointelegraph:
After the current short-term consolidation, Thakore expects Bitcoin price to reach $100,000 before the end of 2024. He said:
Related: Mr. 100 buys the Bitcoin dip for the first time since halving Is the BTC bottom in?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Read the original:
Bitcoin distribution 'danger zone' over, analysts say - Cointelegraph
Bitcoin reaches one billion transactions – Cointelegraph
The Bitcoin network has processed its one billionth transaction marking a huge milestone moment for the network 15 years after its creation.
Clark Moodys Bitcoin dashboard showsthat transaction 1,000,000,000 was processed inblock 842,241 at 9:34 pm UTC on May 5.
It comes 15 years, four months and four days after thepseudonymous creator Bitcoin (BTC), Satoshi Nakamoto, mined the networks first block on Jan. 3, 2009.
The network has processed an average of 178,475 daily transactions in its 5,603-day existence.
However, the count doesnt include transactions made on the Lightning Network, a Bitcoin layer-2 payment protocol enabling faster transactions.
Data from the Bitcoin-only exchange River found the Lightning Network processed a lower-bound estimate of 6.6 million transactions alone in August 2023, suggesting that hundreds of millions of transactions have been made on Lightning since it launched in January, 2018.
Daily transactions on Bitcoin spiked around the networks fourth halving event on April 20, with a record high of 926,000 transactions processed on April 23.
Much of this demand came from the launch of the Runes protocolat block 840,000.
That said, Bitcoinsdaily transaction count has since cooled off to 660,260 on May 4.
Despite Bitcoin being the oldest cryptocurrency network, it isnt the first of its kind to process one billion transactions.
Bitcoins biggest rival, Ethereum, has processed well over two billion transactions since it launched in July 2015, Etherscan data shows.
Related: Impact of Bitcoin halving event on transaction confirmation times
Bitcoin is currently priced at $63,750, up over 12% since it hit a two-month low of $56,800 on May 2, according to CoinGecko.
However, it is still down 13,6% from its all-time high of $73,740 set on March 13.
Magazine: Get Bitcoin or die tryin: Why hip hop stars love crypto
Original post:
Bitcoin reaches one billion transactions - Cointelegraph
Bitcoin mining revenue hits post-halving yearly low – Cointelegraph
Earnings from Bitcoin mining dropped significantly in May as the effects of the fourth Bitcoin halving event set in.
The Bitcoin halving mechanism was designed to increasingly limit the issuance of 21 million Bitcoin (BTC)spread over decades. The April 20 halving reduced mining rewards to 3.125 BTC from 6.25 BTC.
While initial hype around the halving and the launch of Bitcoin Runes temporarily sustained the miners daily earnings, a strong revenue drop was recorded in May. On May 1, the total revenue earned from block rewards and transaction fees fell to a new low of $26.3 million.
In contrast, Bitcoin miners earned roughly $6 million per day on average before the halving, according to data sourced from Blockchain.com.
All the other days in May also recorded similar revenue patterns, signaling a new normal in Bitcoin mining revenue. Coincidentally, mining revenue peaked on April 20, marking an all-time high daily earnings of over $107 million for the first time in Bitcoin history.
Anticipating this significant drop, miners worldwide restrategized operations to remain profitable in the next phase of the Bitcoin economy. If not, miners would have to rely solely on Bitcoins high market value to support operations.
Read Cointelegraphs guide to learn more aboutbeing a profitable Bitcoin miner from home.
CryptoQuant CEO Ki Young Ju calculated that Bitcoin needs to hold above $80,000 to keep mining profitable post-halving under current conditions. However, most miners took proactive measures to upgrade their mining equipment to reduce long-term operational costs while being competitive.
Related:Bitcoin reaches one billion transactions
For example, Bitcoin mining firm Bitfarms allotted $240 million to triple its hash rate. Previously speaking to Cointelegraph, Bitfarms chief financial officer Jeffrey Lucas laid out the firms drive to procure 88,000 highly efficient Bitcoin miners:
Despite the effort, Bitfarms recorded its lowest monthly earnings of 269 Bitcoin in over two years in April.
Magazine: CZ gets jail sentence, Gensler viewed Ether as security, and FBI targets mixers: Hodlers Digest, April 28 May 4
Read this article:
Bitcoin mining revenue hits post-halving yearly low - Cointelegraph
Bitcoin will ‘propel the next leg up’ if key trading pattern confirms Traders – Cointelegraph
Bitcoins (BTC) price could see a bullish trend reversal and propel the next leg up if the popular trading indicator known as the inverse head-and-shoulders pattern is confirmed, according to a crypto trader.
If we dont break straight through $67.5k then something like this forming over the next month would make sense for a bottom pattern reversal, crypto trader Matthew Hyland explained in a May 4 post on X.
He is referring to the inverse head-and-shoulders pattern a bullish indicator that signals the downtrend is easing, and buyers are becoming more dominant in the market.
It would be a great setup to propel the next leg up, he declared.
Although it is crucial that Bitcoin holds above its short-term holder price of $59,500 to maintain its bullish trend, pseudonymous crypto analyst and co-founder of CMCC Crest Willy Woo told his 1.1 million X followers on May 3.
The setup appears when Bitcoins price forms three troughs below a so-called neckline resistance, with the middle otherwise known as the head deeper than the left and right shoulder.
Bitcoins price has slightly rebounded from the head at $58,614 on May 1, and if the pattern continues as Hylands model suggests, it will find support around its second shoulder, at $60,000 a key support level.
The decline would represent a 5% from its current price of $63,350, according to CoinMarketCap data. Dropping to this level would liquidate $530 million in long positions, according to CoinGlass data.
According to Hylands model, Bitcoin may rise above the neckline and exceed its current all-time high of $73,800 by June.
On top of this, buyer interest in the crypto market is slowly increasing, according to the Fear and Greed Index.
The index is currently sitting on a Greed score of 69, a major recovery from three days ago when it indicated Fear with a score of 43.
Related: Bitcoin opens $63K futures gap as thin liquidity threatens BTC price
Meanwhile, some traders expect Bitcoins price to remain stagnant in the near term, but they dont necessarily view this as a bearish signal.
The longer the Bitcoin consolidation takes, the higher its price will meet the trendline, added pseudonymous crypto trader Titan of Crypto.
Bitcoins previous cycle all-time highs tend to slow down price and make Bitcoin stall for some weeks, pseudonymous crypto trader Daan Crypto Traders told his X followers in a May 4 post.
Magazine: Meme coins: Betrayal of cryptos ideals or its true purpose?
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
More here:
Bitcoin will 'propel the next leg up' if key trading pattern confirms Traders - Cointelegraph
First Bitcoin-backed synthetic dollar to launch with 25% yield – Cointelegraph
Hermetica has announced the launch of the first-ever Bitcoin-backed synthetic United States dollar with yield-generating capabilities in the latest development for Bitcoin-native decentralized finance (DeFi).
Slated for release in June, the new synthetic dollar, USDh, will offer users yields of up to 25%, according to Hermeticas announcement shared with Cointelegraph.
The new synthetic dollar will enable Bitcoiners to hold and earn yield on their U.S. dollars without the need to trust the banking system or gain exposure to non-Bitcoin-related products, according to Jakob Schillinger, founder and CEO of Hermetica Labs.
Schillinger told Cointelegraph:
Hermetica is a Stacks-native DeFi protocol on Bitcoinand part of a wider movement known as Bitcoin DeFi (BTCFi), which aims to bring DeFi capabilities to the worlds first blockchain network.
Related: Mr. 100 buys the Bitcoin dip for the first time since halving Is the BTC bottom in?
The launch of the first Bitcoin (BTC)-backed synthetic dollar comes two months afterEthenas USDe launched with a 27.6% yield for holders, creating widespread concerns about the protocols sustainability.
Similar concerns could arise for Hermeticas USDh, as the 25% annual percentage yield (APY) is considerably higher than the 20% yield offered by Anchor Protocol on TerraUSD (UST) before the algorithmic stablecoin issuer Terra collapsed in May 2022.
According to Hermeticas CEO, the yield is sustainable and derived from futures funding rates. Schillinger explained:
Schillinger added that the demand for Bitcoin futures will keep USDh yield sustainable:
Increasingly, more protocols are building more utility and DeFi capabilities around Bitcoin, the worlds most secure blockchain network. Schillinger believes that the introduction of Ordinals was among the most important catalysts for BTCFi. He said:
Related: Biggest Friend.tech whale dumps tokens as users struggle to claim airdrop
Excerpt from:
First Bitcoin-backed synthetic dollar to launch with 25% yield - Cointelegraph
Back to extreme greed past $65K? 5 things to know in Bitcoin this week – Cointelegraph
Bitcoin (BTC) starts a new week with bullish sentiment back on the radar as $64,000 returns.
In a stirring comeback, BTC price action has managed to leave its latest swing lows far behind it, gaining nearly $8,000 versus the pit of last weeks sell-off.
Despite some of those gains coming during the weekend, they proved to have staying power, and during the May 6 Asia trading session, bears are having no luck pushing the market back down.
The mood is thus considerably different into the second week of May but increasing greed is already visible.
Can Bitcoin and altcoins manage sustainable momentum toward all-time highs?
This is the question that traders and analysts will pose after a trip to two-month lows and a considerable flushing out of leverage.
On exchanges, things remain promising, with funding rates neutral, and there are few signs of a mass desire to long BTC at current levels.
Should things take a turn for the worse, however, it is key support levels that will come in for a fresh test. These include the short-term holder (STH) cost basis and 100-day moving average both classic bounce levels.
Cointelegraph takes a closer look at the current state of Bitcoin as the average trader recovers from a hair-raising start to the month.
The weekend ultimately posed no threat to Bitcoin bulls, providing some unexpected upside that ended up holding into the weekly close.
This came in at around $64,000 on Bitstamp, data from Cointelegraph Markets Pro and TradingView confirms around $900 higher versus the end of April.
While not a giant weekly candle, the performance represents an impressive return to form for BTC/USD, which saw a trip to $56,500 in the intervening period.
Unsurprisingly, market observers are quietly optimistic.
Swept all the liquidity below that was built up over the past 2 months and bounced quickly afterwards, popular trader Daan Crypto Trades summarized in part of his latest commentary on X.
Tony Severino, founder of crypto technical analysis platform CoinChartist, noted similarities between last weeks snap drop and similar ones during the bull market.
Every higher swing low in Bitcoin since November 2022 was a weekly hammer, he revealed over the weekend.
In a prior post, Severino added that price was attempting to reclaim the upper monthly Bollinger Band something acting as support since February.
This is potentially a positive development, he suggested.
Data from monitoring resource CoinGlass meanwhile puts BTC/USD up 5.8% in May so far, reducing overall second quarter losses to under 10%.
Crypto markets are notoriously fickle and an emerging trend can quickly fade, pulling sentiment down with it.
If Bitcoin sees a change of trajectory, traders and analysts will be interested in seeing to what extent nearby support levels succeed at limiting any fresh downside.
Michal van de Poppe, founder and CEO of trading firm MNTrading, is one commentator highlighting the significance of $60,000 despite this level offering little consolation to bulls last week.
Bitcoin above $60K and retail isn't here, he told X followers about the relative lack of fanfare accompanying the market comeback.
As Cointelegraph continues to report, $60,000 coincides with several trendlines, which have buoyed BTC/USD since the bull market began in early 2023.
These include the 100-day simple moving average (SMA) and STH realized price the aggregate cost basis of entities holding coins for 155 days or less.
These two levels sit at $60,650 and $59,920 as of May 6, with the latter figure provided by the statistics resource Look Into Bitcoin.
In a research note on May 6, meanwhile, financial commentator Tedtalksmacro added the 50-day exponential moving average (EMA) to the mix.
The 50D EMA stands at $64000 - where BTC is currently trading, a reclaim of that level is significant in defining the high timeframe market structure, he explained.
The upcoming week is relatively quiet when it comes to macroeconomic data, but recent events provide traders more than enough to monitor.
The latest United States employment figures gave risk assets a boost across the board late last week something firmly on the radar for crypto.
With the Federal Reserve increasingly expected to lower interest rates in the coming months, easing of financial conditions is becoming a question of not if but when.
For Van de Poppe, there is even a chance of quantitative easing (QE) making a reappearance a return to the Fed increasing available liquidity.
Very significant chance that most of the pain is already in for Altcoins, he argued.
U.S. dollar strength took a hit on the jobs data, with the U.S. Dollar Index (DXY) declining precipitously to spike to its lowest levels since April 10.
Attention will thus be focused on jobless claims data when it comes to Fed rate cut timing, this due on May 9.
The atmosphere on derivatives markets is noticeably calm as Bitcoin approaches $65,000 but like sentiment, this could change in an instant.
Current data shows practically neutral funding rates for Bitcoin, which is, per trading suite DecenTrader, a reflection of speculators licking their wounds.
Bitcoin funding rates have returned to a more neutral state after going negative at the end of last week, an X post confirmed.
Others described funding rates as still healthy after witnessing a massive reset on the way to $56,500.
Lets hope it can stay that way for a healthy next leg up, Daan Crypto Trades added.
A cursory look at the Crypto Fear and Greed Index provides potential food for thought. Along with the BTC price recovery has come a snapping back of sentiment from neutral to greed, with extreme greed just around the corner.
The Index, which is a lagging indicator, is currently at 71/100, versus just 43/100 on May 2.
$64,000 is not quite enough to allow Bitcoin to avoid a difficulty drop at the next automated readjustment on May 9.
Related:Bitcoin reaches one billion transactions
The second readjustment of the new difficulty epoch is currently predicted to see it decrease by around 1.3%, per data from monitoring resource BTC.com.
Difficulty is nonetheless at all-time highs, a feat mimicked by hash rate as miners digest Aprils block subsidy halving, raw data from MiningPoolStats confirms.
Last week, Cointelegraphreported on miners ongoing resilience, showing no signs of capitulation despite market volatility.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Here is the original post:
Back to extreme greed past $65K? 5 things to know in Bitcoin this week - Cointelegraph
Bitcoin opens $63K futures gap as thin liquidity threatens BTC price – Cointelegraph
Bitcoin (BTC) pushed to $64,500 on May 4 as out-of-hours trading produced fresh BTC price gains.
Data from Cointelegraph Markets Pro and TradingView confirmed new local highs of $64,522 on Bitstamp a new peak for May.
The strength that appeared on United States employment data gathered speed into the daily close, fueled by encouraging crypto market recovery signals, including the first inflows for the Grayscale Bitcoin Trust (GBTC) in nearly three months.
BTC/USD was up 5% month-to-date at the time of writing, per data from monitoring resource CoinGlass, already contrasting with Aprils 15% losses.
Had a great push into the market close yesterday, popular trader Daan Crypto Trades reacted in part of his latest coverage on X.
An accompanying chart showed a clear divergence from the latest CME Group Bitcoin futures closing price, creating a gap that BTC/USD tends to fill later on.
Despite the impressive weekend performance, some were concerned about the overall strength of the market in the absence of TradFi participation.
Keith Alan, co-founder of trading resource Material Indicators, warned that a correction could easily come thanks to thin order book liquidity.
Looking for bid liquidity to replenish to keep this rally going, he told X followers, reposting an order book chart from Material Indicators.
Summarizing his market views, meanwhile, popular trader and commentator Credible Crypto said that conditions might favor going short BTC below main resistance around $69,000.
Related:Price analysis 5/3: BTC, ETH, BNB, SOL, XRP, DOGE, TON, ADA, AVAX, SHIB
Uploading a chart to X, he forecast two possible outcomes for current BTC price action, with the current area comparatively short on liquidity.
Green path is ideal. We hold the local highs we broke above and continue up to the major resistance. This will allow me to fill shorts on a number of alts across the board. Red path is not ideal. We fail to hold this reclaim, see an early breakdown, and ideal short zones for most alts I'm eyeing up are not met, he wrote.
Credible Crypto added that long BTC positions would be of interest should BTC/USD dip below $56,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Continued here:
Bitcoin opens $63K futures gap as thin liquidity threatens BTC price - Cointelegraph