Markets
Crucial Crypto Market Metrics Show Unexpected Uptrend
Arman Shirinian
Despite Bitcoin falling below $65,000, some bulls are still holding on to the market
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THE cryptocurrency market faced one of the worst declines since the start of the month, with around $500 million in various assets liquidated in a matter of hours. For the moment, Bitcoin performance has stabilized somewhat, which should potentially advance buying sentiment on a dip.
Bitcoin’s most recent price movement indicates that it is testing important support levels at around $65,000. Important support lines are provided by the 50-day EMA and the 200-day EMA, and holding above these levels could signal stabilization. It is possible that investors will take advantage of the current decline to add more Bitcoin, as this consolidation phase often precedes potential rallies.
More information can be obtained by looking at funding rates on different exchanges. Positive funding rates exist for popular cryptocurrencies like Ethereum and Solana, for which traders are willing to pay a premium in order to maintain their long positions.
When positive, this metric becomes a key indicator of market sentiment and frequently suggests an upcoming bullish reversal. Additionally, according to the liquidation heatmap, a significant number of long positions – 407.91 million over the past day – are being liquidated.
While this may appear unfavorable at first glance, it often hints at a market reset in which excessive debt is eliminated to make way for a more steady upward trend, given that there is potential for movement to the upside without the possibility of sudden overbought conditions. For now, Bitcoin’s RSI is hovering around the neutral zone. Despite the recent walk decline, this phenomenon and the positive financing rates suggest that there may be room for optimism. However, it would have been better for the asset if the RSI was around the reversal zone.
About the Author
Arman Shirinian
Arman Shirinyan is a trader, crypto enthusiast and SMM expert with over four years of experience.
Arman strongly believes that cryptocurrencies and blockchain will be of constant utility in the future. Currently, it focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.