experienced a recent breakout, pushing its price into a new range that holds significance for its future trajectory. As the price reached a critical level, traders who had previously adopted short positions faced a setback.on a daily timeframe showed its struggle to surpass its short Moving Average since falling below it around 14th January. Previously acting as support, the yellow line switched to resistance once the price trend dipped below it.
Recently, BTC has shown positive trends, successfully breaking above the yellow line and transforming it back into a support level at around $44,300.A notable move occurred on 8th January when the price surged into the $45,000 range, surpassing the level BTC had infrequently reached in recent months.
At the time of this writing, Bitcoin was trading with an almost 2% increase and had broken into the $46,000 price range. The strength of this move was evident in its Relative Strength Index , which was trending towards the oversold zone.Since 7th February, short positions have faced significant liquidations as the price increased. At the end of trading on 7th February, the short liquidation volume was over $33 million, contrasting with around $5 million for long positions.
At the time of this writing, it had increased to over $20 billion, another new level. Despite the modest increase, traders appeared cautious, as the funding rate chart indicated.While the funding rate remained positive, there hasn’t been any significant movement recently. However, the state of the funding rate suggests that buyers are still in control.Adewale is a full-time journalist at AMBCrypto.
Source: Digital Coin News (digitalcoinnews.net)