- Bitcoin rose above $44,000, but traders should be cautious.
- A cluster of liquidity around $45,870 could lead BTC to retrace.
Bitcoin’s [BTC] brief jump above $44,000 on the 21st of December brought back optimism to holders of the coin.
The rise instilled some confidence that BTC’s time to shine has not yet fizzled out, especially as Bitcoin’s price failed to make any big moves in the recent past.
However, traders need to exercise caution despite the price increase. This was the opinion of Greatest_Trader, an author on CryptoQuant.
According to Greatest_Trader, Bitcoin’s price action has impacted the increase in long positions. This inference was indicated by the king coin’s Funding Rate.
Time to be careful with the longs
AMBCrypto checked out the Funding Rate and found out that the metric was positive. By definition, a positive Funding Rate means long positions were predominant in the market at press time.
A long position means a perpetual contract predicting a price increase for a cryptocurrency to make profits from the bet.
Source: Santiment
If the Funding Rate is negative, it means that shorts are dominating the market. But for the analyst, the current Funding Rate may suggest a bullish outlook, as the trend could lead to a rise in long liquidations.
However, Greatest_Trader called for vigilance in his publication, noting that:
“If this trend persists, the market could see a significant shift in the short term. Specifically, there’s a potential risk of a ‘long liquidation cascade’, where a rapid sell-off could occur, dramatically affecting the market”
The analyst’s conclusion led AMBCrypto to assess possible points that longs could be liquidated. To do this, HyblockCapital’s Liquidation Levels indicator came in handy.
Liquidation Levels are estimated price positions where a trader’s position could be wiped out.
High leverage, impending liquidation
According to the chart below, there was a cluster of liquidity around the $44,900 to $45,870 region. Typically, the BTC price may head towards this zone—however, traders with a high leverage risk being liquidated at any of these points.
Upon hitting liquidation, Bitcoin’s price may also reverse.
The Cumulative Liquidation Levels Delta (CLLD) also suggested a bearish bias for Bitcoin. The CLLD, at press time, was positive. But the reading could lead the charge for a full retrace, with BTC potentially dropping below $43,000.
Source: HyblockCapital
In terms of Open Interest, Coinglass showed that it had increased from the fall experienced on the 18th of December. The Open Interest is the amount linked to the number of outstanding futures positions in the market.
The increase implies that more liquidity has been allocated to BTC futures contracts.
Read Bitcoin’s [BTC] Price Prediction 2023-24
At the same time, it is important to consider the effect of the Open Interest on prices. Since the Open Interest increased and Bitcoin’s value fell, it suggests increasing downward momentum.
Should BTC fail to reclaim $44,000 as the Open Interest increases, there is a chance that the coin might drop to $42,000.
Source: Coinglass
- Bitcoin rose above $44,000, but traders should be cautious.
- A cluster of liquidity around $45,870 could lead BTC to retrace.
Bitcoin’s [BTC] brief jump above $44,000 on the 21st of December brought back optimism to holders of the coin.
The rise instilled some confidence that BTC’s time to shine has not yet fizzled out, especially as Bitcoin’s price failed to make any big moves in the recent past.
However, traders need to exercise caution despite the price increase. This was the opinion of Greatest_Trader, an author on CryptoQuant.
According to Greatest_Trader, Bitcoin’s price action has impacted the increase in long positions. This inference was indicated by the king coin’s Funding Rate.
Time to be careful with the longs
AMBCrypto checked out the Funding Rate and found out that the metric was positive. By definition, a positive Funding Rate means long positions were predominant in the market at press time.
A long position means a perpetual contract predicting a price increase for a cryptocurrency to make profits from the bet.
Source: Santiment
If the Funding Rate is negative, it means that shorts are dominating the market. But for the analyst, the current Funding Rate may suggest a bullish outlook, as the trend could lead to a rise in long liquidations.
However, Greatest_Trader called for vigilance in his publication, noting that:
“If this trend persists, the market could see a significant shift in the short term. Specifically, there’s a potential risk of a ‘long liquidation cascade’, where a rapid sell-off could occur, dramatically affecting the market”
The analyst’s conclusion led AMBCrypto to assess possible points that longs could be liquidated. To do this, HyblockCapital’s Liquidation Levels indicator came in handy.
Liquidation Levels are estimated price positions where a trader’s position could be wiped out.
High leverage, impending liquidation
According to the chart below, there was a cluster of liquidity around the $44,900 to $45,870 region. Typically, the BTC price may head towards this zone—however, traders with a high leverage risk being liquidated at any of these points.
Upon hitting liquidation, Bitcoin’s price may also reverse.
The Cumulative Liquidation Levels Delta (CLLD) also suggested a bearish bias for Bitcoin. The CLLD, at press time, was positive. But the reading could lead the charge for a full retrace, with BTC potentially dropping below $43,000.
Source: HyblockCapital
In terms of Open Interest, Coinglass showed that it had increased from the fall experienced on the 18th of December. The Open Interest is the amount linked to the number of outstanding futures positions in the market.
The increase implies that more liquidity has been allocated to BTC futures contracts.
Read Bitcoin’s [BTC] Price Prediction 2023-24
At the same time, it is important to consider the effect of the Open Interest on prices. Since the Open Interest increased and Bitcoin’s value fell, it suggests increasing downward momentum.
Should BTC fail to reclaim $44,000 as the Open Interest increases, there is a chance that the coin might drop to $42,000.
Source: Coinglass
where can i buy clomid no prescription order cheap clomiphene without prescription where buy clomid price can i get generic clomid online can i get generic clomid without insurance buying cheap clomiphene without dr prescription can i order generic clomiphene online
With thanks. Loads of erudition!
order generic zithromax 500mg – buy zithromax 250mg generic where can i buy flagyl
buy semaglutide 14 mg pills – order generic semaglutide 14 mg cyproheptadine 4mg for sale
oral domperidone – sumycin sale buy flexeril 15mg pills
order inderal 20mg without prescription – cost methotrexate 10mg buy methotrexate pills for sale
buy augmentin 1000mg pill – atbioinfo.com purchase ampicillin sale
buy nexium generic – https://anexamate.com/ nexium 40mg pill
coumadin 2mg over the counter – cou mamide losartan over the counter
order meloxicam 7.5mg without prescription – https://moboxsin.com/ buy mobic 15mg online cheap
buy deltasone 5mg generic – https://apreplson.com/ prednisone 5mg without prescription
best ed pill for diabetics – https://fastedtotake.com/ pills for erection
amoxicillin cost – buy generic amoxil over the counter buy amoxil pills for sale
buy diflucan online – forcan pill purchase forcan without prescription
cenforce price – https://cenforcers.com/ buy generic cenforce
cialis coupon walmart – ciltad gn cialis windsor canada
tadalafil tablets erectafil 20 – is generic cialis available in canada cialis experience
buy cheap ranitidine – https://aranitidine.com/ ranitidine order online
sildenafil 50mg online – https://strongvpls.com/ generic viagra 100mg
This is the kind of content I take advantage of reading. amoxil 500 suspensiГіn
This is a topic which is virtually to my heart… Myriad thanks! Exactly where can I upon the acquaintance details an eye to questions? cheap gabapentin 600mg
The depth in this ruined is exceptional. https://ursxdol.com/clomid-for-sale-50-mg/
More delight pieces like this would insinuate the web better. https://prohnrg.com/product/diltiazem-online/
More articles like this would pretence of the blogosphere richer. https://aranitidine.com/fr/lasix_en_ligne_achat/