Intense Risk of Bitcoin Price Decrease Indicated by Derivative Pressure Score Reaching 30%
In the world of cryptocurrency, Bitcoin is currently experiencing a correction as its price slips below key demand zones, with the current price standing at $110,488. This dip has raised concerns among investors, particularly as the 50-day moving average is near $115,755, serving as overhead resistance.
The market structure suggests a consolidation phase, with the top analyst, Axel Adler, highlighting that Bitcoin's current weakness is strongly linked to dynamics in the derivatives market. The Bitcoin Open Interest Pressure Score, as revealed by Adler, stands at 30%, indicating an increased risk state. The presence of orange cluster markers on the price chart reinforces this risk, indicating a process of long de-leveraging.
If bulls manage to hold above $110K, a move toward $115K and eventually $123K could follow. However, failure to hold above this crucial level may lead to tests of lower demand zones closer to $105K-$101K. A decisive breakdown below the 200-day moving average, currently around $101,388, could accelerate a deeper correction.
Meanwhile, there's a trend of capital rotation in the crypto markets, with institutions and whales selling portions of their BTC holdings to accumulate Ethereum. This shift of liquidity has likely contributed to Bitcoin's struggle to hold above the $110K level, weakening bullish conviction. Interestingly, a whale has added $435-M Ethereum, indicating ongoing institutional demand for Ethereum.
Traders who overextended during Bitcoin's surge above $120K are now being forced out of positions, weighing on momentum and creating a ceiling on recovery attempts. BTC is attempting to reclaim the $110K threshold, which has become a pivotal level. The $100K level, on the other hand, serves as psychological support.
In such environments, leveraged longs face pressure, and any sharp decline in spot prices tends to trigger waves of liquidations that amplify volatility. The 200-day moving average, acting as a critical safety net, may provide some support if the price continues to dip. However, the Bitcoin Open Interest Pressure Score at 30% reflects elevated risk conditions and vulnerability to sudden downside jolts.
It's important to note that no specific information about a record win at BitStarz was found to be relevant to the discussion about Bitcoin's current trend. As always, investors are advised to conduct thorough research and consider their risk appetite before making investment decisions.
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