Bitcoin has edged up to $77,000 after finding support at $75,000, but remains trapped in a narrow range between $75,000 and $80,000 since mid-April. Despite this uptick, negative funding rates and steady open interest at $19 billion suggest traders maintain a short bias, indicating a lack of conviction in the rally. Options markets show a bullish sentiment with a 58% call volume, yet overall positioning remains cautious, as evidenced by the subdued basis of 1.5% annualized.
The broader crypto market reflects mixed performance, with Bitcoin’s recent rise contributing to a 0.7% gain in the CoinDesk 20 Index. However, precious metals have declined, and altcoins exhibit varied results, highlighting ongoing uncertainty in investor sentiment. Notably, the liquidation landscape shows $149 million in liquidations over the past 24 hours, predominantly among long positions.
For market professionals, the key takeaway is the persistent short positioning in Bitcoin, suggesting that while there may be bullish sentiment in options, traders are still wary of significant upward momentum. Monitoring the $75,400 liquidation level will be crucial for gauging potential price shifts in the near term.
Source: coindesk.com