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With the broader cryptocurrency market making significant gains in the wake of Fed cuts interest ratesBitcoin (BTC) price reached $63,670 on Thursday, indicating significant bullish momentum since late August. This surge has sparked increased interest from both retail traders and institutional players, leading to a variety of positions within the market.
Divergence in trading strategies
According to a recent study mail On social media site X (formerly Twitter) via technical analyst InspoCrypto, the recent price action on the Binance BTC/USDT perpetual futures chart highlights a strong uptrend, with Bitcoin breaking key resistance levels around $60,000.
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The volume accompanying this price rise remains strong, according to the analyst, indicating strong support for the ongoing trend. Upward movementInspoCrypto notes that while the market is currently in a bullish phase with no immediate signs of a reversal, potential resistance is expected at around $64,000 to $65,000.
Insights from a heat map prepared by Hyblock Capital reveal significant differences in positions between large traders (whales) and retail investors. The heat maps show an increase in long positions among retail traders, especially in the $62,500 to $63,500 range.
In contrast, whales were accumulating short positions below $60,000, indicating cautious sentiment among Institutional players Despite the short-term optimism among retail investors towards the largest cryptocurrency in the market.
Bitcoin faces major liquidation levels at $60K and $64K
InspoCrypto also highlighted that open interest in the futures market was also rising alongside the price of Bitcoin, especially in the $62,000 to $63,500 range, indicating growing confidence in Uptrend.
Additionally, the current funding rate is positive, indicating that long positions are widespread and that traders are willing to pay a premium to maintain those positions. However, the analyst warns that a sustained high funding rate could lead to Market corrections While traders rebalance their positions.
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Volume remains a crucial indicator of market strength, supporting an upside rally above $63,000. Notably, the volume delta is positive, indicating more buying pressure than selling. However, there are important factors Filter levels At $60K and $64K, which could lead to volatility if the market tests these price points.
Overall, InspoCrypto claims that the sentiment in the market is somewhat bullish, rating it 7 out of 10. While individual traders appear confident and are mostly taking long positions, the accumulation of short positions by whales indicates a potential cautionary stance.
At the time of writing, the industry’s largest digital asset is trading at $63,300 for the first time since late August. That represents a 5% gain over the past 24 hours, along with gains of 8% and 12% over the past seven and 14 days, respectively.
Featured image by DALL-E, chart by TradingView.com
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