Bitcoin Leveraged Positions Building Up: BTC To $50,000 Or $60,000?

Source Newsbtc

Bitcoin is firm at spot rates, looking at the development in the daily chart. Even so, the downtrend remains, and price action remains within a bearish breakout formation. This outlook follows the dump on September 7 that saw the world’s most valuable coin plunge, approaching the all-important round number, $50,000.

Bitcoin Leveraged Positions Building Up

Technically, the downtrend remains, especially if bulls can’t unwind the losses of September 7. From an effort-versus-result perspective, the trend set in motion by September 7 will shape the short-term, possibly accelerating the fall below August lows.

Amid this development, one on-chain analyst notes that there has been a massive accumulation of leveraged positions from March 2024. Though it remains uncertain which direction prices will move, the current state of affairs means sellers have the upper hand.

Bitcoin leveraged positions build up | Source: @AxelAdlerJr via X

If bulls take over, this would be a massive sentiment boost for BTC bulls, who have had to contend with sharp losses over the past three months. Regardless of the direction, this build-up in leverage position precedes a period of heightened volatility in the coming days.

While Bitcoin trends lower, sentiment has taken a hit, explaining the shrinking trading volume over the past two weeks. Since late August, BTC has fallen from around $66,000, losing nearly 20% by last week’s lows.

Bitcoin price trending downward on the daily chart | Source: BTCUSDT on Binance, TradingView

 

At the same time, volatility is comparatively low and not unlike the state of affairs when BTC turned the corner, sharply expanding from late February before printing fresh all-time highs in mid-March 2024.

Average Funding Rate Is Bullish, Will This Change?

Interestingly, despite the lower lows, trading data shows that the average funding rate across derivatives exchanges has remained bullish for over a year.

This development could be due to the shift in price action that saw the world’s most valuable coin turn the corner, rising from late Q3 2023. The recovery saw BTC shake off weakness and explode to above $70,000 after losses in 2022 that took the coin to as low as $15,800.

For bulls to dominate in the derivatives market, prices must recover steadily. A break above $66,000 and July highs would likely spur demand, lifting the coin above the multi-month resistance at $72,000.

Spot Bitcoin ETF flows | Source: SosoValue

Nonetheless, for this to happen, there must be inflows to spot Bitcoin ETFs. Falling prices have accelerated outflows from this product, meaning institutions are playing safe. So far, SosoValue shows outflows of over $169 million for spot Bitcoin ETF issuers in the United States.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
3 Things That Need to Happen for Bitcoin to Reach $200,000At its recent price of about $106,000, Bitcoin (CRYPTO: BTC) is obviously a long way from $200,000. Still, given that the coin has gained more than 150% during the past 12 months a
Author  The Motley Fool
17 hours ago
At its recent price of about $106,000, Bitcoin (CRYPTO: BTC) is obviously a long way from $200,000. Still, given that the coin has gained more than 150% during the past 12 months a
placeholder
Bitcoin Price To $122K Next Month? Research Predicts Big MoveMany analysts are ruminating on the next significant milestone, as the remarkable price increase of Bitcoin has captivated the market’s attention. A research company, 10x Research, predicts
Author  NewsBTC
3 hours ago
Many analysts are ruminating on the next significant milestone, as the remarkable price increase of Bitcoin has captivated the market’s attention. A research company, 10x Research, predicts
placeholder
Crypto execs are worried about TRUMP meme coinsAccording to a Jan. 22nd report by the Financial Times, crypto industry leaders are raising serious concerns about the chaos caused by TRUMP and MELANIA, the controversial memecoins launched by ‘crypto president’ Donald Trump and his wife the weekend before his Monday inauguration. Nic Carter for instance, founding partner of Castle Island Ventures, reportedly said, […]
Author  Cryptopolitan
3 hours ago
According to a Jan. 22nd report by the Financial Times, crypto industry leaders are raising serious concerns about the chaos caused by TRUMP and MELANIA, the controversial memecoins launched by ‘crypto president’ Donald Trump and his wife the weekend before his Monday inauguration. Nic Carter for instance, founding partner of Castle Island Ventures, reportedly said, […]
placeholder
Ripple's XRP ETFs: Is SEC approval on the horizon following CME's rumored futures launch?The Chicago Mercantile Exchange (CME) allegedly plans to launch Ripple's XRP and Solana (SOL) futures contracts following a now-deleted post on a staging website detailing how trading for both assets will function.
Author  FXStreet
2 hours ago
The Chicago Mercantile Exchange (CME) allegedly plans to launch Ripple's XRP and Solana (SOL) futures contracts following a now-deleted post on a staging website detailing how trading for both assets will function.
placeholder
Bitcoin Price Slides Once More: Can Bulls Defend Key Levels?Bitcoin price struggled to clear the $107,200 resistance zone. BTC is correcting gains and might revisit the $100,000 support zone. Bitcoin started a downside correction from the $107,200 zone. The
Author  NewsBTC
1 hour ago
Bitcoin price struggled to clear the $107,200 resistance zone. BTC is correcting gains and might revisit the $100,000 support zone. Bitcoin started a downside correction from the $107,200 zone. The
goTop
quote