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Bitcoin is on the mend, and traders are eyeing $57,000 and $60,300 as crucial short-term price ranges to track.
Bitcoin (BTC) is regaining ground after a weekend sell-off triggered by cascading liquidations in the futures market.
Traders have identified three main price ranges to monitor in the short term: $51,200 as the big support, $60,300 as the significant resistance, and $57,000 as the immediate term region of concern for sellers.
It is critical for Bitcoin to reclaim $57,000
Although the price of Bitcoin has slipped to about $50,000, the financial structure itself does not seem to be particularly worrying, according to TraderKoz, a pseudonymous trader.
Bitcoin fell below $50,000, but it soon returned to about $53,000 and has remained above $56,000 since.
Referring to the chart above, the trader said:
“You know, if this wick wasn’t quite as long because of all the cascading liquidations… it would actually be some really clean PA.”
In the short term, Bitcoin must climb and maintain a price over $57,000. If the price of Bitcoin stabilises at these values, it would confirm that the weekend plunge was solely technological and futures market-driven.
Rekt Capital, a common pseudonymous trader, also stressed that the macro support level remains at $51,200. Bitcoin rapidly stabilised after falling to the low $50,000 range.
As a result, if Bitcoin manages to stabilise in the near term and does not fall below $51,200, it would confirm a higher low structure.
When the most recent Bitcoin low is higher than the previous low stage, a higher low structure forms.
The trader explained:
“Last time #BTC dipped into the low-$50000s was four weeks ago Then, $BTC dipped to ~$50200 before reversing Recently, BTC dipped to the low-$50000s again This time, BTC dipped to ~$51200 before reversing BTC bottomed $1000 higher on this dip. That is a Higher Low.”
Furthermore, analysts at Santiment observed that BTC recovered quickly after the Bitcoin funding rate on BitMEX went negative.
This suggests that significant organic buyer appetite arose as selling pressure in the futures sector began to increase, supporting the case for a short-term pattern turnaround as long as Bitcoin holds above $57,000.
The analysts wrote:
“The #BitMEX funding rate for #Bitcoin went negative (more contracts betting against $BTC’s price rising than contracts betting in favor) this weekend for the first time in 3 months. As is often the case, the price bounced right as the #FUD settled in.”
Will the relief rally continue?
When the price of Bitcoin fell, huge contributions were made to exchanges, leading to the selling pressure.
However, as Bitcoin Jack, a cryptocurrency futures broker, found out, exchange exits or outflows outnumbered deposits.
“April 15, 16 and 17th $BTC saw ~482K addresses deposit to exchanges Same period ~220K addresses were withdrawn to from exchanges & net positive outflow recorded Many tiny hands in -> fewer bigger hands out Confirmed by short term holder SOPR capitulation.”
As long as trade withdrawals are equal to or greater than exchange deposits, Bitcoin’s technological traction is unlikely to wane in the near term.