Bitcoin traders are eagerly anticipating an upward movement in BTC price as liquidity becomes a battleground for bulls. Data from CoinGlass, a monitoring resource, reveals that bid liquidity is approaching the active trading range above $60,000 on April 17.
Bitcoin has recently seen a significant liquidation of long positions, with a sudden retracement “flushing” hundreds of millions of dollars. However, the bulls have yet to regain control, as BTC/USD remains stagnant around $63,000 and is still at risk of a further decline.
The latest order book data shows that bids are currently trying to get filled just below the spot price, a common strategy aimed at driving the market lower. Keith Alan, co-founder of trading resource Material Indicators, explains that this process is ultimately beneficial for the market, as it sets the stage for an upward bounce. Historically, gathering bids has preceded a breakout into overhead resistance.
CoinGlass indicates that the largest concentrations of bids in the past 24 hours are at $61,200, $62,200, and $62,800.
In a significant shift in trader sentiment, funding rates for Bitcoin have turned negative for the first time since October 2023. This indicates a reversal from the bullish sentiment experienced during the period around March’s all-time highs. Shorts are now paying longs, reflecting a more bearish sentiment in the market.
DecenTrader, a trading suite, notes that although the negative funding period was short-lived, it suggests a cooling down of the derivatives trading environment.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.