BTC has recently seen large long positions cluster making the current price continued to pull it higher in long term range. The MACD histogram had turned positive, confirming that the upward momentum had increased, with the momentum clearly shifting to the upside.
Although, the RSI is at 44.61 as of now, indicating neutral territory, but approaching the oversold region. If the RSI dips further, it could suggest weakening bullish sentiment and open the door for further declines. These positions have been a source of downward pressure on BTC, pulling the price lower as liquidation orders are triggered.
BTC’s volatility showed a noticeable drop in recent weeks. Decreasing volatility often signals the exhaustion of selling pressure, particularly after a period of sustained declines. If BTC’s price continues to dip, more long liquidations could be activated, further accelerating the downward movement.
However, a shift toward more balanced long and short positioning might stabilize the market, reducing liquidation risks and facilitating a price recovery. The positive aspect is that the aggregated order book delta showed strong liquidity around the $95,000 mark, indicating significant interest from traders.
As of now, at the time of writing this article, BTC is being traded around $96,500 on various exchanges and has seen a growth of 1.71% in its price over the past week recovering from the selling mark of $93,800.