U.Today – Market analyst Will Clemente reports that there has been a noticeable enhance in trading activity in the market, with over $1 billion worth of BTC futures contracts opened in the past day alone.
The market is clearly showing increased interest and positions, but there is growing suspicion that a quick decline and run in the market may be inevitable, which could signal short-term volatility before any further gains. According to Clemente’s analysis, there could be a significant drop, as immense futures positions often result in liquidation spikes in the event of a market reversal.
Traders should exercise caution, especially in delicate of the rising open interest. This type of market structure usually precedes significant moves, which could be bearish if significant liquidations occur, or bullish if momentum continues. Important prices to watch for include:
$64,000 Resistance: This pivot point is currently reachable and could indicate whether Bitcoin will continue its current upward trajectory. Bearish forecasts for the near future would be invalidated if the asset breaks above this level.
In case of a pullback, bulls need to stay above this level. This could be a sign of a more stern correction. The next significant support is at $56,000. This is a lower support level in case of a sudden sell-off or a keen liquidation. Failure at this area could herald a more stern market reversal.
Outlook: Bitcoin could continue its move towards the upper channel at $64,000, leading to a sustained breakout if this level is broken, or it could continue to rally due to the current enhance in open interest and price momentum.
But there is a high probability of a short-term correction, especially if positions that were over-leveraged are liquidated. If the bullish sentiment continues, the market could retreat to $60,000 or even lower before it starts to rise again.
