latest Bitcoin The (BTC) price pump that saw the world’s biggest cryptocurrency rally into the mid-$30,000s per coin wiped out short positions worth millions.
In fact, in the last two days, $107 million worth Bitcoin Futures short positions have been liquidated across major cryptocurrency exchanges, according to cryptocurrency derivatives analytics website Coinglass.
Nearly $60 million in short positions were liquidated on Tuesday alone, the highest daily tally since 16th of March.
A separate chart presented by CoinGlass shows that bulls are gaining the upper hand when it comes to demand. Bitcoin Forward leverage.
Bitcoin futures leveraged funding rates recently rose to 0.03% on the decentralized cryptocurrency derivatives exchange dYdX, the highest level since late March.
A positive funding rate means that traders who opened leveraged long positions are paying funding to those who opened leveraged short positions, indicating a higher level of demand for the latter rather than the former.
The bitcoin options markets also point to a bullish trend.
According to data presented by The Block, 25% of bitcoin options with expirations in 7, 30, 60, 90 and 180 days have delta skew above zero and are not far below their highs for the year.
A skew above zero suggests that investors are increasingly paying a premium for call options versus their mirror opposite call option counterparts.
Here Are The Major BTC Price Targets To Watch
It appears that the latest bitcoin price pump has been catalyzed by short-term technical developments, including a recent breakout from a multi-week pennant formation.
Other technical observations such as 1) the fact that BTC found consistent support at its 21 DMA in recent days, 2) all major moving averages are in an uptrend, 3) from the 200 DMA in mid-March and 4) The recent strong rally ) “golden cross” since the beginning of February adds up to all the reasons that have kept BTC price rising.
While risk of profit-taking is rising as the 14-day Relative Strength Index (RSI) moves back into the “overbought” zone, the bulls will now have their sights on the next key bullish target at the $32,500 area.
These are the highs since late May 2022 and roughly coincide with the January 2022 lows.
Will macro spoil the party?
Bitcoin’s strong start to the week has been preceded by the release of a barrage of key US data points on Wednesday, Thursday and Friday.
These include the latest Consumer and Producer Price Index reports, the latest retail sales reports and an early edition of the April University of Michigan Consumer Sentiment Survey.
With the minutes from the latest FOMC meeting of Fed policymakers set to be released on Wednesday, expectations regarding these data releases could change significantly. US growth And this Fed’s interest rate outlook,
This can affect crypto prices in a big way.
If this week’s data goes against the narrative that the Fed will begin a rate-cutting cycle later this year (i.e. if inflation data are hotter than expected and other data suggest that US consumers are still in good shape), If so), it could see an upside move against the US Dollar and weigh on US Yields and Bitcoin, potentially sending it sharply back below $30,000.
On the other hand, if this week’s data suggests that 1) inflation is continuing to decline sharply and 2) that the likelihood of a US recession later this year is rising, it could support bitcoin if it trades against the US Dollar. And triggers fresh weakness in yields.
