With almost $90 million in long liquidations, the Bitcoin price is evidently under high bearish pressure, dropping by 4.44% in 72 hours. Further, this drop showcases an amplified bearish wave transcending to the altcoins sector.
With almost a 15% drop in April 2024, the BTC price marks the first bearish month after August 2023. The price drop in the highly anticipated month of Bitcoin Halving expresses a healthy correction for a prolonged uptrend to an optimistic eye.
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Will this pullback and the rising volatility around the $60,000-$62,000 support zone end the uptrend for Bitcoin? Or is the Bitcoin price prediction of reaching the $100,000 milestone come true?
BTC Price Performance
The biggest cryptocurrency with a market cap of $1.213 Trillion, Bitcoin trades at $61,516 and a 6.63% 7D return. With a massive market cap, Bitcoin dominates 53.50% of the crypto market. Hence, any move in the BTC price trend leads to an amplified move in the altcoins sector.
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During April’s downfall, the BTC price trend shows an intense pullback, breaking under the support trendline. The short-term bullish reversal last weekend led to the retest.
With a post-retest reversal, Bitcoin price is starting another dip and tests the bullish dominance at the $62,000 demand zone. Currently, the BTC price trades at $61,482 with an intraday move of 0.49%.
While the reversal shows an increase in supply, the daily RSI line reflects a potential bullish comeback around the corner. After a reversal from the oversold boundary, the RSI line trends close to the halfway line.
Bitcoin ETFs Slowdown Drys BTC Uptrend
On May 8, 2024, the Bitcoin ETFs witnessed a minor net inflow of $11.5M, dominated solely by the Bitwise ETF ($BITB). Despite this, the overall activity within the 10 major US Bitcoin ETFs, including Grayscale ($GBTC), remained largely stagnant, indicating a pause in momentum.
Surprisingly, Funding Rates Are Bullish
The Bitcoin derivatives market currently exhibits a bullish sentiment, underscored by a funding rate of 0.0032813, where long position holders are the majority. This is complemented by a taker buy/sell ratio favoring buyers (0.52036968), suggesting strong buying pressure that could drive prices upwards.
Open interest in the market has increased by 3.78% over the last week to $14.48 billion, indicating growing liquidity and volatility. However, the higher rate of long liquidations, amounting to $21.31 million, indicates potential over-optimism among traders. Thus, it highlights a cautiously optimistic market but not without risks.
80% of Bitcoin HODLers Are Waiting For Profits
Bitcoin’s historical active addresses analysis by profitability reveals a vast financial gap among holders. Only about 20% of addresses, totalling 83.57k, are “In The Money.” This suggests a relatively small segment is making money at the current market price.
Conversely, the rest of the majority, almost 80% of HODLers, are still waiting for profits. Specifically, 6.11% of addresses, or 25.89k, are “Out Of The Money,” and 74.66% of addresses, which translates to 318.42k, are “At The Money.”
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