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Bitcoin (BTC) shows signs of gaining traction as it trades at a critical support level, sparking optimism among long traders.
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Despite a notable long position of $198.11 million opened by a whale, negative short sentiments are creating resistance against a price surge.
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“Bitcoin’s price could rally significantly if it holds this level,” noted a source from COINOTAG, underscoring the importance of current market dynamics.
Bitcoin rallies as a major whale enters with a significant long position, highlighting shifting dynamics and potential price movement opportunities.
Bitcoin hits historic supply, eyes a bounce
Over the past month, Bitcoin has entered a critical support zone on the chart, a level that has historically triggered significant rallies.
As indicated on the chart, this zone has consistently fueled major price surges. If Bitcoin successfully holds this level for the fifth time, it could spark a substantial upward movement, potentially driving the asset’s price to $150,000 or beyond.
This bullish sentiment and the potential for a market rally have been intensified following a Hyperliquid whale opening a $198.11 million long position, expecting the asset to see a major price run-up. The gradual surge in the past day has led to $5.99 million in unrealized profit, with a funding fee of $142,110.
The broader derivatives market supports this bullish narrative, suggesting the possibility of a rally. Buying volume in the market remained high, with a press time reading of 1.035, indicating more buyers than sellers—which could push the asset higher.
How are traders channeling liquidity?
To understand the depth and trend of market movement, COINOTAG studied the flow of liquidity into the market.
Using the Accumulation/Distribution indicator, it shows there has been a gradual accumulation of Bitcoin, implying that traders are buying the asset steadily.
Accumulation volume reached $4 million worth of Bitcoin.
Despite a decline in liquidity flow, the Money Flow Index (MFI) on the chart remains bullish at 59.26. This indicates that traders are capitalizing on the dip, signaling optimism for the asset’s prospects. If liquidity flow improves, Bitcoin could potentially rise further, extending its current gains.
Short traders are feeling the heat
This gradual rise in Bitcoin’s price hasn’t favored short traders.
At the time of writing, $56.41 million worth of short contracts had been forcefully closed, compared to $13.25 million in long positions—highlighting the possibility of a market rally.
A study of Bitcoin’s Funding Rate confirms the tendency for a rally.
With a rate of 0.0098%, a positive Funding Rate could imply that long traders are paying fees to maintain their positions and avoid price disparity between the spot and futures markets.
Bitcoin currently remains in a favorable position for a rally, but this will only materialize if broader market sentiment continues to align with current bullish indicators.
Conclusion
As Bitcoin carefully navigates a crucial support zone and traders exhibit increasing bullish sentiments, the potential for a significant price rally looms large. Investors should remain vigilant, as market dynamics will continue to shape the path ahead for Bitcoin.
