Markets
Crucial Crypto Market Metric Shows Unexpected Optimism by U.Today
U.Today – The cryptocurrency market faced one of the worst drops since the beginning of the month, with around US$500 million in various assets being liquidated in a matter of hours. For now, ‘s performance has stabilized somewhat, which should potentially boost falling buying sentiment.
Bitcoin’s latest price movement indicates that it is testing important support levels at approximately $65,000. Significant support lines are being provided by the 50-day EMA and 200-day EMA, and holding above these levels could signal stabilization. There is a chance that investors could take advantage of the current dip to add more Bitcoin because this consolidation phase often precedes possible recoveries.
More information can be obtained by examining funding rates on different exchanges. There are positive funding rates for popular cryptocurrencies like and, for which traders are prepared to pay a premium to hold their long positions.
When positive, this measure becomes a key indicator of market sentiment and often suggests a future bullish reversal. Additionally, a significant number of long positions – 407.91 million over the last day – are being liquidated, according to the liquidation heatmap.
While this may seem unfavorable at first glance, it often suggests a market reset in which excess leverage is eliminated to make room for a steadier upward trend, as there is potential for an upward movement without the possibility of sudden overbought conditions. . For now, Bitcoin’s RSI is circling in the neutral zone. Despite the recent market decline, this fact and positive mortgage rates suggest there may be room for optimism. However, it would have been better for the asset if the RSI was close to the reversal zone.