In its latest YouTube video, Crypto Rover explored Bitcoin's current market dynamics, focusing on the recent completion of the halving process. With a keen eye on the charts, Rover noticed Bitcoin's resilience during the upward rebound, and realized that past resistance levels could turn into strong support. This shift led Rover to explore liquidity patterns, particularly the emergence of negative funding rates.
Is now a good time to invest? Let's check it out.
Signal interpretation
Referring to historical trends, Loeber explains that negative funding rates often indicate a bullish move and have historically been associated with market rallies. He examined the liquidity situation and highlighted the significant liquidity above Bitcoin's current price. Rover said reaching $71,600 is critical. If Bitcoin achieves this, there could be a massive $3 billion short sale.
His analysis is based on CoinGlass, a well-respected derivatives market tracker, and shows substantial liquidity at these levels.
overcome volatility
Despite the short-term ups and downs, the next resistance target is around $67,000, and there is optimism for further upside. Rover emphasizes the need to remain vigilant amid market turmoil, especially with the new emergence of the CME futures gap.
However, negative financing rates are still a positive indicator, historically indicating a buying opportunity and indicating a market bottom. Additionally, the accumulation of more than $2.8 billion in liquidations above current levels suggests that prices may be headed for an increase.
Also check: When will Bitcoin skyrocket after the 2024 halving?
Weekend roller coaster: Are you ready for chaos?
Over the weekend, Bitcoin experienced a sudden decline, hitting a low of $62,000 before briefly rebounding to $66,797 before settling at $64,711. This volatility has led to a record number of liquidations, with long positions totaling more than $1.2 billion, demonstrating the uncertainty in the market. According to recent data from Coinglass, his 89,151 traders have lost his $266.1 million in the past 24 hours with liquidations underway.
Nevertheless, Bitcoin registered a small gain, coinciding with the approval of Spot Bitcoin and Ethereum ETF by Hong Kong regulators.
Also read: Here’s why the crypto market is falling today!
Looking to the future: What’s next?
Cryptocurrency expert Willy Wu says these ETFs could drive the price of Bitcoin to an ambitious goal, potentially exceeding $91,000 and rivaling the market capitalization of gold. I had predicted it. Wu suggests that increased institutional interest could increase capital inflows into Bitcoin, further increasing its value.
