Open Interest grew from a low of $54.62 billion to a high of $62.14 billion in January.
Bitcoin’s [BTC] price has been consolidating around the $90k-zone lately. According to AMBCrypto, this price action had the makings of a bottom when zoomed out. In fact, a $3k price wick downwards on 06 January resulted in roughly $440 million in liquidations, most of them being long.
Source: CoinGlass
CoinGlass data showed that at press time, the last 24 hours of trading saw $218.19 million in liquidations across the market. Crypto longs accounted for $140.60 million of them.
Source: CryptoQuant
In the last 24 hours, Bitcoin has oscillated between the $89.3k and $91k-levels. Its recent retest of the $94.5k resistance gave bulls hope of a breakout. Alas, this has not yet materialized. This would explain the higher amount of long liquidations since 05 January.
What is in store for crypto longs next?
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The altcoin market has shown strength against BTC so far in January – Encouraging in the short term. In a post on X, crypto analyst Maartuun observed that the most recent price bounce from $89.3k was supported by sizeable capital inflows.
The positive spot CVD should not fool swing traders and investors must not immediately switch to a long-term bullish bias.
Source: CoinGlass
The Open Interest grew from a low of $54.62 billion to a high of $62.14 billion in January. This growth stalled over the last 24 hours as BTC was unable to climb past the $92k-mark.
At the same time, Bitcoin Spot ETFs saw large outflows over the last three days. At press time, Farside Investors’ data showed $1.128 billion in outflows since 06 January.
Exploring key Bitcoin resistance levels overhead
Source: BTC/USDT on TradingView
Finally, the 4-hour chart showed that the $80.6k and $107.5k levels were the swing points of the price drop in November. The sideways price action in December set the $94.5k-level as a local supply zone – A level that has not yet been breached.
Crypto traders looking to go long can be more confident in a bullish outcome if the $94.5k-resistance is overcome. The local support zones at $90k and $88k (cyan) could also offer short-term Bitcoin buying opportunities.
Final Thoughts
- Bitcoin’s recent price action has primarily hunted down long positions as traders turned bullish following Bitcoin’s move above $90k. Long-term bulls should keep an eye on macroeconomic conditions and demand for Bitcoin.
Next: Bitcoin to $2.9M by 2050? VanEck outlines bold base-case scenario
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