More than $4 billion in long positions is now about to be settled near $77,000 – a figure that emphasizes the value of Bitcoin rising above $80,000.
Collaborative Reading
Bears Continue to Rebuild, Continue to Burn
More information followed by Bitcoin researcher Axel Adler Jr. shows that nearly $8 billion in limited space has been foreclosed on since early February, with the largest one-day increase hitting $737 million on Feb. 13.
The shutdown didn’t come all at once. They arrived in three separate waves from February to April, each triggered by the fact that less traders built positions at higher prices – only to be recaptured if the price stabilized.
Daily volumes dropped by $2 to $28 million before rebounding to $175 million on May 4. The jump came amid another quiet week, showing short-term exposure building near $80,000.
Reports say that recurring patterns show traders are always betting against price – and always under pressure.
Source: Axel Adler Jr.
Adler’s trend pulse model adds to the story. Bitcoin they left the bears’ path and entered neutral territory in early April. The short-term momentum has changed, although a strong bullish indicator calls for a 30-day move above the 200-day.
According to the report, every major wave so far has occurred when the trend has been in the neutral zone – a reversal zone that has repeatedly attracted short sellers.
High Interest Increases Stress
Bitcoin is open interest through the entire exchange rose 6% to almost $ 30 billion since the beginning of May, its highest reading since Jan. 31. This increase means that the market is more sensitive to sudden movements in price – up or down.
Stock prices remain close to -0.0045, a sign that bearish pressure is still active while long positions are absent.
Market analyst Coin Niel also reported on the net exchange exit of 837 BTC on May 5, following a massive outflow of 6,590 BTC last Monday.
Steady outflows indicate accumulation, as coins leave exchanges and enter private wallets, which reduces the availability of the current supply.
Collaborative Reading
Bitcoin broke above the lows it made in April. The 100-day moving average is now sitting below the current price, acting as a bottom.
The long-term fixed price is close to $81,500, a level that makes the current buyers profitable and can also reduce the pressure to sell in the near future.
Supply Zone Ahead, With a Big Drop Below
The price range of $86,000 to $90,000 represents the pre-sold area – the group that sellers entered during the last recovery and pushed the price down. That area is the next big test of any continuing conference.
Image taken from Vecteezy, chart from TradingView
