Bitcoin is changing hands at $65,292. The asset has gained 0.9 percent in the last 24 hours as today’s US PPI print proved softer than the market expectations. June’s PPI fell to 5.5 percent, and this is comparatively lower than May’s 5.9 percent, which gives the market investors an additional indication that there may be ease on the inflation pressure.
The move was rather minimal, though, and with a larger trend to consider based on derivatives, some much bigger actions are at play. Over the last 24 hours, more than $329 million has been liquidated across the crypto market. With $268.3 million from shorts and only $61.1 million from long positions. Which indicates a large number of shorting bets on Bitcoin were set prior to the inflation news, which are now being closed.
Bitcoin receives slight support from the softer inflation
The producer price index (PPI) is on the watchlist of the market participants because it provides an indication of future inflation and interest rate expectations. A lower print should ease pressure on the Federal Reserve to remain tight on its monetary policy and tend to support risk assets like Bitcoin.
This largest cryptocurrency has followed up the response to the numbers by staying above $65,000, continuing the rally off the late June low. Though this rally has been relatively subdued, to the extent that the market has preserved much of its earlier gains when it pushed into what has proven to be a key area of resistance, it indicates that there are buyers still around post-initial data reaction.
The liquidation figures also show that these traders were positioned for a different outcome. The second largest crypto by market cap, Ethereum, saw the largest liquidations at $80.4 million, whereas Bitcoin was responsible for $28.4 million. According to Coinglass, the single biggest liquidation was valued at $11.9 million for an ETHUSDT position on Binance. This is what highlighting how heavily some of the market participants engaged in placing bets against the market trend.
The short liquidations can be accelerated when the price moves as the market participants get forced to buy back when the price moves up. This usually happens on a temporary basis. The spot demand will be the metric that will decide whether this asset can continue the uptrend or not, replacing those forced purchases.
Funding rates are still on the controllable side
Even with the large number of short liquidations, funding rates continue to be relatively stable. Binance funding stands at the figure of 0.0068 percent, OKX at 0.0047 percent, and Bybit at 0.0056 percent, while Bitunix is still marginally negative at -0.0070 percent.
This is key to note here, as it depicts that the rally is not being influenced by excessive bullish leverage. In many strong rallies, funding rates go up considerably when traders rush into long positions and this triggers the risk of a correction in case those positions unwind. In this scenario, it has not happened.
Ethereum shows a similar pattern, with some exchanges still reporting slightly negative funding. Together, the data suggests the market has mainly cleared out bearish positions rather than becoming overcrowded with new long trades.
Bitcoin is making its way to test key resistance
Bitcoin has been consolidating upward nicely ever since rebounding from the $58,000 mark at the end of June. As the price continues to move up, it has bounced off the 63,319 support region and is currently attempting the resistance zone of $65,000, which previously pushed prices back down throughout June.
The overall buying interest has increased with an RSI7 of 63.88, an RSI14 at 56.20, and a MACD histogram indicating positive gains for buyers. The price of Bitcoin currently holds a bullish trend, moving above both the 7-day SMA at $63,476 and the 30-day SMA at $62,601.
Above that, the next resistance is the 23.6 percent Fibonacci retracement at $65,006. A convincing breakthrough here could be followed by $67,248, $69,832, and $70,571. On the other side of the chart, $63,319 should be the first support, just ahead of the daily pivot close to $62,783. Failure to hold this area could send Bitcoin to retest $61,377 before facing stronger support at about $59,800.
