Bitcoin saw a short-term drop in price, mainly due to the liquidation of excessive long orders. This resulted in a more than $ 1.5 billion decline in open interest.
There is no evidence of a positive payout from long-term (LTH) holders other than very small sales in the 7-10 year pool. Older coins did not move during this pullback.
The cup-with-grip pattern appears to have closed with the previous resistance at $ 64,800 which is now set to act as support.
BTC / USDT daily chart | Source: TradingView
This short-term retracement is not a cause for concern. In fact, it benefits the market structure. The bulls are currently trying to keep BTC above the critical $ 64,800 level. Further liquidations are possible, however, and Bitcoin could find support at $ 62,400, $ 61,800, $ 61,300, and $ 60,000, respectively.
The upside momentum in the higher time frames remains very solid and a weekly candle closing price above $ 64,800 will confirm the continuation of the uptrend.
The next targets are $ 70,000 and $ 80,500.
Approximately $ 1.5 billion in open interest was released during the switch. The funding ratio has also returned to neutral as it has fallen from a high of 0.05 to 0.01. The leverage is still relatively high as it has only decreased slightly from 0.20 to 0.19.
There has been an inflow of 1,000 to 2,000 BTC into the exchanges, but strong demand has absorbed the supply, leaving BTC balances on the exchanges unchanged. The Mean Coin Age indicator is currently hitting an intraday high, suggesting that older coins were not sold during this pullback.
The mineral reserves have remained unchanged since the start of the pullback. Overall, the trend is still pointing upwards. If the bulls can hold $ 64,800 as support on a weekly basis, BTC can move up to the next target of $ 70,000 and above to $ 80,000.
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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
According to Cryptopotato