Bitcoin is currently trading near $62,894, and the asset has witnessed a 0.6 percent decrease on the day following the time it pushed up towards $65,100 earlier in the week. The largest cryptocurrency has traded in a channel since the end of June between $59,800 and $63,320, as buyers repeatedly bought up near the low and sellers stepped back in near the high point of the band.
And so it happened again with this latest rally. Bitcoin briefly tested above $65,100 but couldn’t sustain itself and fell back into the zone. Bitcoin also failed at this rising trendline on two occasions over the past two sessions but it managed to hold so far, though the bounces have been fairly limp, and there is evidence that buyers are having trouble gaining momentum.
On the volume side, the metric appears pretty solid, although there isn’t exactly a quiet marketplace going on but more of one in which both the buyer’s and seller’s positions can be identified in the same range of price points.
The biggest losses were carried by the long traders
The most significant part is from the derivatives, where close to $80.8 million of Bitcoin positions have been liquidated in the time period of the past 24 hours. The long positions were valued at $66.09 million and short positions made up $14.69 million.
We see the same trend for lower time frames. According to Coinglass, in the last hour, longs have been liquidated at $5.39 million, whereas shorts have lost approximately $22k. In the last 12 hours, we saw $47 million liquidated on the longs, whereas $3.36 million have been liquidated on the shorts.
This implies that traders still believe a breakout is inevitable, and it is occurring, just not in the direction they anticipated. Bitcoin’s downward trajectory within the range triggers the closure of a large number of these bullish long positions. These successive liquidations also illustrate that on each dip, the long side is being exacerbated as new bullish positions are placed, thus generating a recurring arrangement.
Funding rates is maintaining the positive figures
The funding rates have also been predominantly positive almost every day since July 3, ranging between 0.004 percent and 0.010 percent. Therefore, long traders are paying short traders to roll their positions over and this is normally typical for a healthy uptrend . However, Bitcoin is currently stuck in sideways price action for about 2 weeks.
Consequently, most traders have been paying for the funding for little or no price appreciation. This has led to, even after multiple long liquidations, new long positions flooding the market, ensuring that funding is positive. This means that most traders still anticipate a breakout but have also caused too many leveraged long positions to be vulnerable.
Key levels are trapping the current price action of Bitcoin
Technical indicators continue to show a mixed picture. RSI readings remain close to the neutral 50 level, suggesting neither buyers nor sellers have full control. The MACD histogram remains positive, indicating short-term momentum is improving but not yet confirming a larger breakout.
This largest cryptocurrency is trending below the 200-day MA, which is near the range of $73,400 to $75,200, and it is showing the weakness of the long-term trend even with the recent recovery attempt. Price is also trading just below the short-term 7-day moving averages, showing buyers have not fully regained control.
From a Fibonacci perspective, Bitcoin is trading between the 38.2 percent retracement near $63,067 and the 50 percent level around $62,051. This places the price in the middle of an important support and resistance zone. The daily pivot near $64,141 also lines up with recent resistance, making that area difficult for buyers to reclaim.
