The recent rise in Bitcoin's price is attributed to macroeconomic factors, but analysts warn of negative signals on the charts.
Bitcoin's Price Surge and Market Reaction
Bitcoin's (BTC) price has risen more than 3% to reach $116,500. This occurred after dipping to $112,000 earlier this week. One factor driving this increase was Federal Reserve Chairman Jerome Powell's statement about potential interest rate cuts if the labor market deteriorates.
Chart Signals
On the daily chart, Bitcoin has returned above the 23-day and 50-day moving averages in a single trading session. However, these averages are converging, which could lead to a bearish trend if prices begin to drop again. The main support is the 200-day trendline around $100,600. The crossing of shorter lines below this level may indicate a classic 'death cross,' signaling that euphoric spikes could lead to larger pullbacks.
General Trends in the Crypto Market
In just one hour, nearly $240 million in short positions were liquidated, pushing the total futures turnover to $107 billion, a 55% increase. Options volume more than doubled past $8.4 billion, but open interest slipped 3%, indicating that market participants are primarily focused on making profits rather than taking risks. The ratios on exchanges like Binance and OKX also suggest a tilt towards long positions in the market.
Despite the recent price surge in Bitcoin, analysts point out potential bearish signals on the charts, which could lead to price corrections in the future.
