Market situation: How long will the bitcoin boom last in recent days?

After breaking the $ 44,000 resistance, experts now cite $ 47,000 as Bitcoin’s next target. Leverage traders, meanwhile, continue to be cautious when entering buying positions.

According to Quinn Desk, the price of bitcoin reached over $ 43,000 yesterday, and with this jump, about 30% of the fall after November (November) was offset by the market. Earlier today, prices on some exchanges exceeded $ 45,400. Some experts expect this jump in pressure on debt sales in the market to continue; However, rising prices in recent days have been slower than previous jumps.

Yesterday, the volume of bitcoin transactions in major exchanges increased; But current figures are still below their peak in January. The fact that the volume of trade is below average during an uptrend is usually a sign of low confidence of traders in the market situation.

Despite rising prices, volatility in the bitcoin options market remains low.

QCP Capital Trading Institute said:

Despite the rapid growth of prices in the immediate markets of bitcoin, market fluctuations [قراردادهای اختیار معامله] It remains limited. The weekly rate of implicit fluctuations of bitcoin reached 50%! So far, however, this percentage has improved slightly.

Technical indicators show that there is room for $ 45,000 to $ 47,000 to continue the upward trend of resistance.

“Cattle Stockton, CEO of Fairlead Strategies,” says:

Bitcoin is now testing the level of the 50-day moving average after the price jump due to market saturation led to support at $ 37,400. As the long-term upward trend in prices has disappeared, we must be cautious.

Professional traders are still cautious

The average bitcoin capitalization rate or the price of holding long trading positions in the permanent futures market on digital currency exchanges remains low despite recent price spikes. This means that professional traders in the leverage markets remain cautious and do not jump into the water despite a 16% jump in prices over the past seven days.

QCP Capital Institute said that the situation with interest rates on financing is slightly negative, which means that if the upward trend continues, the trading positions of short-term leverage will be eliminated, which will increase the pressure of sales of loans on the market.

Loan sales occur when short traders are forced to exit their trading positions due to a sudden rise in market prices.

Liquidation also occurs when an exchanger completely closes the trading position of the leverage trader in order to prevent the burning of the initial amount due to the trader. In fact, trading platforms do not allow the balance of the trader’s account to reach less than his debt. This happens mainly in the futures markets.

The previous jump in the market capitalization of bitcoin dates back to early 2021; Movement that happened before the price fell by 50%. This time, however, the exchange rate has not yet reached very high levels, which means that some traders fear the widespread liquidation of long positions during the recent market downturn and are not entering the market at the moment.

Market situation: How long will the bitcoin boom last in recent days?
Bitcoin capital chart

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