As the broader cryptocurrency market experiences notable gains following the Federal Reserve Rate CutsBitcoin (BTC) hit a price of $63,670 on Thursday, marking a substantial bullish momentum since late August. This surge has sparked growing interest from both retail traders and institutional players, leading to diversified positioning in the market.
Divergence in trader strategies
According to a recent publish on social media site
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The volume accompanying this price increase remains robust, according to the analyst, indicating solid support for continued upward movement. InspoCrypto suggests that although the market is currently in a bullish phase with no immediate signs of reversal, potential resistance is expected around $64,000 to $65,000.
Hyblock Capital’s heatmap insights reveal significant differences in positioning between large traders (whales) and retail investors. The heatmaps show an increase in long positions among retail traders, particularly in the $62,500 to $63,500 range.
In contrast, whales have been accumulating short positions below $60,000, suggesting cautious sentiment among institutional actors Despite short-term optimism among retail investors regarding the largest cryptocurrency on the market.
Bitcoin Faces Major Liquidation Levels at $60,000 and $64,000
InspoCrypto also highlights that the number of open contracts in the futures market has also been increasing along with the price of Bitcoin, especially in the range of US$62,000 to US$63,500, indicating growing confidence in the uptrend.
Furthermore, the current funding rate is positive, suggesting that long positions are prevalent and that traders are willing to pay a premium to hold these positions. However, the analyst warns that a sustained high funding rate could lead to market corrections as traders rebalance their positions.
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Volume continues to be a critical indicator of market strength, supporting the bullish rally as it breaks above the $63,000 mark. Notably, the volume delta is positive, indicating more buying pressure than selling. However, there are important settlement levels at $60,000 and $64,000, which could trigger volatility if the market tests those prices.
Overall, InspoCrypto states that the market sentiment is moderately bullish, rated at 7 out of 10. While retail traders appear confident and are predominantly taking long positions, the accumulation of short positions by whales signals a potential cautious stance.
At the time of writing, the industry’s largest digital asset was trading at $63,300 for the first time since late August. This represents a 5% increase in the past 24 hours, along with gains of 8% and 12% in the past seven and fourteen days, respectively.
Featured image of DALL-E, chart from TradingView.com