Bitcoin Price Recovery
Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, is showing signs of recovery after hitting a monthly low of $55,500. In recent days, BTC’s price had dropped by more than 10%, but over the last three days, it has rebounded by more than 5%, indicating a potential price reversal.
Bitcoin Price Reversal
With the recent price surge, BTC has managed to break out from a descending trendline and is now approaching a significant resistance level of $58,000. As of the latest data, BTC is trading near the $56,740 level, experiencing a price increase of over 4.5% in the last 24 hours. This surge in price has also been accompanied by a significant rise in trading volume, which has jumped by 86% over the same period, reflecting heightened interest from traders and investors.
Bitcoin Technical Analysis
Expert technical analysis reveals that despite trading below the 200 Exponential Moving Average (EMA) on both the four-hour and daily time frames, BTC maintains a bullish outlook. The recent price surge followed the formation of a bullish divergence on its Relative Strength Index (RSI) on a daily time frame, suggesting further upward momentum. Based on historical price trends, there is a strong possibility that BTC’s price could rise by another 10%, potentially reaching the $62,000 level in the coming days.
Bullish On-chain Metrics
Apart from technical analysis, on-chain metrics also support the bullish sentiment. According to Coinglass, the BTC Long/Short ratio currently stands near 1.095, indicating bullish sentiment among traders (a value above 1 signifies a bullish outlook). Additionally, BTC’s future open interest has increased by 6% in the last 24 hours, continuing to rise. This combination of factors is often used by traders and investors to build long/short positions, reinforcing the current optimistic market view.
Key Liquidation Areas
Currently, the major liquidation areas are identified near $55,900 on the lower side and $57,000 on the upper side, as traders at these levels are over-leveraged, according to Coinglass data. If the bullish market trend continues and BTC’s price reaches the $57,000 level, nearly $71 million worth of long positions will be liquidated. Conversely, if market sentiment shifts and the price drops to the $55,900 level, approximately $91.2 million worth of long positions will be liquidated. This data suggests that the bulls are presently dominating the market and have the potential to liquidate more short positions in the upcoming days.
