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The crucial parameter of the cryptocurrency market shows an unexpected rise
Arman Shirinyan
Despite Bitcoin falling below $65,000, some bulls are still protecting the market
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THE cryptocurrency market faced one of its worst declines since the start of the month, with around $500 million in various assets liquidated in a matter of hours. Currently, That of Bitcoin performance has stabilized somewhat, which should potentially push buy-dip sentiment forward.
Bitcoin’s most recent price action indicates that it is testing major support levels at around $65,000. Significant support lines are provided by the 50-day EMA and 200-day EMA, and holding above these levels could signal stabilization. There is a possibility that investors could take advantage of the current decline to add more Bitcoin because this consolidation phase often precedes potential recoveries.
More information can be obtained by examining the financing rates on different exchanges. There are positive funding rates for the most popular cryptocurrencies such as Ethereum and Solana, for which traders are willing to pay a premium to maintain their long positions.
When positive, this measure becomes a key indicator of market sentiment and often suggests an impending bullish reversal. Furthermore, according to the liquidation heatmap, a significant number of long positions – 407.91 million over the last day – are in the process of liquidating.
While this may seem unfavorable at first, it often suggests a market reset where excess leverage is eliminated to make room for a more stable uptrend, as there is the potential for an upward move without the possibility of sudden overbought conditions. For now, Bitcoin’s RSI is hovering in the neutral zone. Despite the recent market decline, this and positive financing rates suggest there may be room for optimism. However, it would have been better for the asset if the RSI was located around the reversal zone.
About the author
Arman Shirinyan
Arman Shirinyan is a trader, cryptocurrency enthusiast and SMM expert with more than four years of experience.
Arman firmly believes that cryptocurrencies and blockchain will be in constant use in the future. Currently he focuses on news, articles with in-depth analysis of crypto projects and technical analysis of cryptocurrency trading pairs.