U.Today – Market analyst Will Clemente reports that there has been a noticeable increase in trading activity, with over $1 billion worth of BTC perpetual futures contracts opened in the last day alone.
The market is clearly showing more interest and positions, but there is growing speculation that a rapid decline and run in the market may be imminent, which could indicate short-term volatility before further gains are realized. According to Clemente's analysis, there may be a significant pullback because large contract positions frequently result in liquidation spikes should the market reverse.
Traders should proceed with caution, particularly in light of rising open interest. This type of market structure typically occurs before significant moves, which can be down if significant sell-offs occur or up if momentum continues. Important prices to watch are:
$64,000 Resistance – This pivotal point is currently reachable and may indicate whether or not Bitcoin will continue its current upward trajectory. Bearish predictions for the near future would be negated if the asset breaks through this level.
In case of a pullback, the bulls need to stay above this level. This could be a signal for a more significant correction. The next significant support is at $56,000. This is the lower support level in case of a sudden sell-off or liquidation spike. A failure in this area could foreshadow a more significant reversal of the market trend.
Prediction Scenario: Bitcoin could continue its run towards the upper channel at $64,000, which would trigger a sustained breakout if this level is breached, or it could continue moving higher due to the current surge in open interest and price momentum.
But there is a good chance of a brief correction, particularly if overleveraged positions are liquidated. If bullish sentiment holds, the market could retrace to $60,000 or even lower before starting to rise again.
This article was originally published on U.Today
