Bitcoin

when

April

Material

<h2 id="key-points">Key Points</h2>
<ul>
 <li>Bitcoin traders are pushing for a price increase as liquidity sets up new challenges for the bulls.</li>
 <li>Bitcoin has liquidated a significant portion of longs this week, with a sudden retracement eliminating hundreds of millions of dollars in positions.</li>
</ul>
<p>Bitcoin (BTC) traders are pushing for a price increase as liquidity prepares for new challenges for the bulls. Data from CoinGlass, a monitoring resource, shows bid liquidity moving closer to the active trading range above $60,000 on April 17.</p>
<h2 id="bitcoin-price-liquidity-increases-near-key-support">Bitcoin Price Liquidity Increases Near Key Support</h2>
<p>This week, Bitcoin has liquidated a significant portion of longs. A sudden retracement eliminated hundreds of millions of dollars in positions. However, bulls have not yet redressed the balance. BTC/USD is stuck around $63,000 and still threatens a fresh breakdown.</p>
<p>The most recent order book data indicates that bids are currently attempting to get filled just below spot price. This is a common practice aiming to draw the market lower. Keith Alan, co-founder of trading resource Material Indicators, suggests this is ultimately cathartic for a market in need of an upside bounce. He states that historically, taking bids has preceded a run into overhead resistance.</p>
<h2 id="bitcoin-funding-rates-temporarily-turn-negative">Bitcoin Funding Rates Temporarily Turn Negative</h2>
<p>Trader sentiment is reflected by a return to negative funding rates for the first time since October 2023. This is a significant change from recent weeks, particularly the period around March’s all-time highs. Funding is now back to circling bearish sentiment, with shorts paying longs.</p>
<p>Daan Crypto Trades, a popular trader, notes that the past 6 months’ funding rate heatmap shows how March was generally overheated compared to the rest. He explains that this is normal when prices are trading near new all-time highs but can also result in the occasional flush of leverage.</p>
<p>Trading suite DecenTrader noted that the negative funding period, although short-lived, indicated an overall cooling environment. It concluded that “funding rates are back positive again but it was a sign that derivatives trading exuberance is calming down.”</p>

Bitcoin Bounces Back: Anticipation Rises as Bids Exceed $60K Mark

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