$BTW It managed a pretty decent bounce after being dumped to 1.6025, and now it’s back above $2 ($2.0113).
But looking at the data, this rally is a bit tricky. The price is up +6.42%, but Open Interest (OI) actually dropped from 40.25M to 37.94M over the last 5 hours. That means that while the price was gradually climbing, more futures positions were actually being closed. Most likely, this is just due to short covering, rather than a massive influx of fresh long positions. Plus, volume during the rebound wasn’t nearly as strong as during that sell-off candle earlier.
The funding rate is still holding in negative territory (-0.048%). Sure, that puts some pressure on short positions, but we still need further confirmation, especially since BTC is under a bit of pressure around 81K.
The crucial key resistance levels right now are $2.05–$2.0890. If the price breaks through and OI starts rising again, the momentum will look much stronger. But if it fails to break through and drops back below $1.95, then get ready for another look at the lower support area.
Basically, buyers have responded at the lows, but it’s still too early to call this fully confirmed bullish. We’ll have to see whether it can get past $2.0890.
What do you think? Is there a chance it’ll break its peak again, or is this just a temporary technical rebound?
But looking at the data, this rally is a bit tricky. The price is up +6.42%, but Open Interest (OI) actually dropped from 40.25M to 37.94M over the last 5 hours. That means that while the price was gradually climbing, more futures positions were actually being closed. Most likely, this is just due to short covering, rather than a massive influx of fresh long positions. Plus, volume during the rebound wasn’t nearly as strong as during that sell-off candle earlier.
The funding rate is still holding in negative territory (-0.048%). Sure, that puts some pressure on short positions, but we still need further confirmation, especially since BTC is under a bit of pressure around 81K.
The crucial key resistance levels right now are $2.05–$2.0890. If the price breaks through and OI starts rising again, the momentum will look much stronger. But if it fails to break through and drops back below $1.95, then get ready for another look at the lower support area.
Basically, buyers have responded at the lows, but it’s still too early to call this fully confirmed bullish. We’ll have to see whether it can get past $2.0890.
What do you think? Is there a chance it’ll break its peak again, or is this just a temporary technical rebound?