Bitcoin Price Hangs in the Balance
Analyst Ali Martinez believes that Bitcoin is currently consolidating in a parallel channel and the $42,400 support level will determine its next move. If BTC breaks below this level, it could potentially drop to $40,700. However, a rebound from the support level could lead to renewed upside momentum towards $44,400.
Funding rates in the crypto market have gone haywire, resulting in the liquidation of $40 million worth of long positions within an hour. Over the past 24 hours, a total of 70,611 traders have been liquidated, with the total amount reaching $170 million.
Popular trader Skew noted that significant amounts of BTC have been sold into price on Binance Spot. He suggests monitoring the $42.7k level and keeping an eye on altcoins for potential scalp trades.
Pressure Mounts on BTC
Traders are hopeful for a Santa Claus rally this week, but there is also the upcoming yearly options delivery event and the potential approval of a spot Bitcoin ETF by the US SEC. Spot Bitcoin ETF issuers must submit filings with any necessary changes before the December 29 deadline.
The price of BTC has dropped from its 24-hour high and is currently trading at $42,623. Trading volume has increased by 38% in the past 24 hours, indicating heightened interest among traders. This coincides with a significant rise in BTC OI-weighted funding rate.
Hot Take: Bitcoin Price Faces Uncertainty Amidst Liquidations
The Bitcoin market is currently experiencing a period of uncertainty as traders liquidate their long positions, leading to a negative shift in sentiment. Analyst Ali Martinez warns that if BTC breaks below the key support level of $42,400, it could potentially drop further to $40,700. On the other hand, a rebound from this support level could pave the way for renewed upward momentum.
The recent surge in funding rates has resulted in a significant amount of long positions being liquidated, causing volatility in the market. Traders are closely watching the $42.7k level and exploring opportunities in altcoins for potential quick scalp trades. Meanwhile, BTC faces pressure from upcoming events such as yearly options delivery and the potential approval of a spot Bitcoin ETF by the US SEC.
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