Bitcoin traders are eagerly awaiting an increase in BTC price as liquidity sets the stage for a battle between bulls and bears. According to data from CoinGlass, bid liquidity is moving closer to the active trading range above $60,000 on April 17.
Bitcoin has recently liquidated a significant portion of long positions, resulting in the loss of hundreds of millions of dollars. However, the bulls have yet to regain control, and BTC/USD remains stagnant around $63,000, with the possibility 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 tactic used to drive the market lower. Keith Alan, co-founder of trading resource Material Indicators, suggests that this is a necessary step for the market to experience an upward bounce. In the past, an increase in bid liquidity has preceded a break through overhead resistance.
CoinGlass reports that the largest concentrations of bids in the past 24 hours are at $61,200, $62,200, and $62,800.
In a noteworthy shift, funding rates for Bitcoin have turned negative for the first time since October 2023. This indicates a shift in trader sentiment, with shorts paying longs. This change contrasts with the “overheated” funding rates seen in March when Bitcoin reached its all-time highs.
DecenTrader, a trading suite, points out that while the negative funding period was short-lived, it reflects a cooling down of the derivatives trading market.
Please note that this article does not provide investment advice or recommendations. It is important for readers to conduct their own research before making any investment or trading decisions.