BTC doesn’t seem to be taking a clear direction at the moment. After a sharp drop yesterday, which saw the price drop over $3,000 in a short period of time to a low of $56,300, the Bitcoin (BTC) price recovered this morning to around $58,600. However, as of this writing, the price has fallen back to $57,600.
Bitcoin volatility leads to liquidations
The high volatility has led to significant liquidations in the market. These large shakeouts resulted in liquidations of both long and short positions. According to data from CoinGlass, approximately $75 million worth of positions were liquidated in the past 24 hours.
Renowned Dutch crypto trader Daan Crypto Trades called this event a “sweeping masterclass” and emphasized that both bulls and bears suffered heavy losses.
Despite the recovery, Bitcoin’s outlook remains uncertain. Keith Alan, co-founder of analytics platform Material Indicators, notes that the market may be bracing for a deeper drop, which could lead to a pullback to six-month lows or even to levels around $45,000.
This prediction aligns with an earlier analysis by Markus Thielen of 10x Research, who recently predicted a drop to the lower $40,000 levels. Historically, this zone is a crucial support level.
Negative Funding Rates: Harbinger of a New Bitcoin Rally?
The short-term outlook for Bitcoin is uncertain and difficult to predict, especially since its price is highly dependent on external factors. No one can say for sure what the future will bring. However, on-chain analytics platform CryptoQuant points to a striking trend in the derivatives markets.
Funding rates for Bitcoin positions are now negative for the third day in a row. This means that short positions are currently dominant and that holding these positions comes at a cost.
The last time we saw such negative funding rates was in October 2023, when Bitcoin’s price surged significantly, eventually reaching a historic high of nearly $74,000.
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Source: https://newsbit.nl/bitcoin-koers-schommelt-wild-welke-richting-gaat-de-koers-op/
