Bitcoin (BTC), which is a cryptocurrency, reached an all-time record high yesterday. It climbed to $111999 at Binance before falling to about $110,000 as of the writing. Although the overall trend is still bullish, analysts are now predicting a temporary pullback.
Bitcoin remains bullish but some pullback is expected
BorisVest contributed a CryptoQuant Quicktake article that noted early signs suggesting BTC could face a short correction. Analyst noted that Bitcoin’s bullish trend could be threatened if the momentum does not pick up quickly.
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Binance taker buy/sell volume has shown a noticeable spike in aggressive buy orders – usually a bullish signal – but sell volume has also risen The demand is effectively met by both of them. BTC price did not increase proportionally despite this rise in buying volume. This suggests distribution or selling pressure.
Uninitiated users can use Binance’s taker volume to measure the aggressiveness of buying and selling using market orders. Higher taker buy volumes indicate strong interest from buyers, whereas higher taker sale volume indicates stronger pressure on sellers.
Binance has also seen a surge in open interest during the recent rally. This indicates an influx of positions that are leveraged. Although rising open interest may support future gains, Bitcoin’s subdued reaction to the price rally raises questions about its short-term strength.
While the rally has been largely neutral, funding rates have mostly remained constant. BTC funding rates have been slightly higher since the recent rally to a new ATH. This suggests that there is heightened long-term exposure, and renewed optimism.
This breakout sparked significant short liquidations and likely fueled a short squeeze. Data from Coinglass shows that over the past 24 hours, $521 million in positions were liquidated – $448 million of which were shorts.
It’s Time to Take a Breather before the Market Climbs Higher
CryptoQuant’s contributor concluded by noting that Bitcoin’s bullish overall structure is still intact despite recent signs of caution. But the market may be seeing early indications of a short-term decline, due in part to the spiking nature of this move.
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Some analysts have a similar view of BTC. Crypto analyst Christian Chifoi, for example. suggested that the current price action may be a deceptive move designed to trap bullish traders – potentially pushing BTC down to $97,000 before the final rally begins.
The recent spate of terrorism is a good example. weakness Observations in the US Dollar Index have sparked hopes that capital will be reallocated to BTC and other alternative assets. BTC was trading at $110 885 as of press time. This is an increase by 1.1% from the previous 24 hours.
Charts and image are from TradingView.com, CryptoQuant.
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Source: www.newsbtc.com
