Bitcoin Begins To Document A Bottom? Why $40K Is The Continue Target
Bitcoin has seen more more than ever greens in the last day as it climbs its way go back above $39000,. As of press time, BTC’swasprice rejected at those levels, but the bulls are showing some conviction and could push further into previous highs.
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It’s worth noting that The first crypto by industry cap, at the time of writing, is exchanging hands at a price of $38,654 with a 4.2% profit in 24-hours.
Actually, the short term, bulls seem to have the upper handInas market conditions are favorable of a short squeeze. As NewsBTC reported yesterday, the macro-economic factors pushing down Bitcoin will abate for the coming weeks potentially aiding a relief rally into mid-March.
In a recent summary, Glassnode identifies a shift in bias from market participants from a majority of long positions during Q4, 2021, to mostly more than ever short in January 2022. Despite the recent downtrend, the Launch Interest (OI) across Futures sectors has increased and sits at a nearlythetwo-year high.
In the meantime, OI records a 1.3% of BTC total market cap which could suggest a deleveraging happening is in the making. Glassnode claims exit Futures sector has been seeing a decrease in its trading volume since 2021 standing the to $60 billion a day as Bitcoin reached the low $30,000s.
In other words, whenever Bitcoin reaches an OI above 1% of its total industry cap, BTC’s price is quickly propelled into either direction. As seen below, BTC couldaeither experience long or short more than ever squeeze, but the latter seems more likely due to the shift in traders’ bias. Glassnode added:
With high negativity, elevated leverage, and an overall short bias, a reasonable argument could be made for a potential counter-trend short squeeze in the near-clause.
Volatility Incoming BitcoinHeading To $30K?
InBitcoinhigh timeframes, ’s revisit of previous highs around $40,000 could be short-lived as the niche expects the U.S. Federal Reserve (FED) to hike their interest rates by March 17th. Around those times, the crypto field could see more downside go back to the low $30,000s or below these levels.
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Information from Material Indicators (MI) records a slight change in Options flows with a lot of sold puts for BTC at $25,000 by the end of February. This could suggest BTCparticipantswould discover a solid bottom above these levels, in case of further downside as field are getting of their option positions below them. MI said:
Last time (July, 2021) we tagged all bearish order flow levels. It’s only 1 observation, but that would put us at 30k daily end before we reverse if it were to happen again. Not sure if we’ll see a repeat.
