U.Today – Although the price has been rising recently, a deeper look indicates that the market may not be ready for a substantial breakout as most investors are taking profits. Although Bitcoin has shown some bullish trends, the data suggests that a significant rally may not happen anytime soon.
First, market flow indicates a trend where it is more common to view current price action as an opportunity to take profits or sell long positions than to initiate recent ones. The actions of traders who close long positions and spot traders who take profits at these moments clearly demonstrate this.
The market may not be ready for an explosive move higher yet, as such flow patterns typically take time to develop into a more structurally bullish trend. Additionally, understanding the current market position requires understanding the liquidity dynamics around $60,000 and $61,000.
Sellers appear to be hesitant to bid up in the absence of robust buyer support, as the $60,000 ask liquidity was pulled out just before the buyer-driven pump. Furthermore, there is significant supply starting at $61,000, which is a contextual barrier that the market may have difficulty overcoming in the absence of stronger buying interest.
Positioning in the futures market is another critical issue. Perpetual futures data indicates that misplaced shorts may have been squeezed, although the trend is still spot-driven, which is generally positive for the market.
But aggressive longs, which usually signal robust confidence in a sustained move higher, are not being established. There does appear to be some buying, but not enough to significantly drive the price higher at this point given the decline in open interest (OI) and rising CVD and delta. Finally, it is concerning that there have been no limit bids since the $57,000 lows. A high time frame (HTF) rally would require additional support in the form of rising limit bids to give the price a more solid base to move higher.
