We have seen $CME Bitcoin - main 2404(BTCmain)$ climb 4% and focus have sharpened on the $58.8K as potential pivot point. This is because if we go back to before 18 April, where we saw Bitcoin was just below $60,000 on 17 April.
We have since saw a 4% rally, CryptoSlate has identified $58.8k as a major support level — which is the short-term holder realized price (STH RP) that has previously acted as support during bull runs. If Bitcoin drops below the support level, it could signal a bearish trend, similar to the breach of STH RP in May 2021 that kicked off the bear market.
The URPD (Unspent Realized Price Distribution) metric, as defined by Glassnode, shows the prices at which the current set of Bitcoin UTXOs were created — with each bar representing the amount of existing BTC that last moved within a specific price bucket.
As of current we are at around 64K, but we need to watch the bar closely as any changes might bring us below 60K again.
Liquidation Map
We will see Bitcoin decline if the liquidation of bullish bets accelerate, so far, we have not seen that happen, so we are in a pretty safe region of leverage.
I will be watching the liquidation map and the leverage level closely as well, we are very close to the halving.
Summary
As we need to understand that lack of liquidity for BTC would mean BTC could be trading lower, but on the other hand, liquidation of bullish bets should not accelerate, because this would cause the Bitcoin price to suffer.
Appreciate if you could share your thoughts in the comment section whether you think liquidity would continue to stay healthy after the halving event?
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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