After surpassing a critical technical level, Bitcoin demonstrates a bullish momentum captivating investors. Will this surge continue in the coming hours? Analysis of key indicators, volatility, and leverage positions sheds light on whether to anticipate an explosion or a correction.
Historically, when Bitcoin trades significantly above its short-term realized price, it often signals overheated conditions. This typically precedes corrections. Conversely, green arrows highlight points where the price has recovered or held above this level, often indicating bullish pivots.
Currently, BTC is hovering just above the short-term realized price, suggesting a key decision zone. Meanwhile, the STH-MVRV is approaching the neutral level of 1.0 from below – a zone historically associated with accumulation or imminent bullish volatility.
A deep dive into Bitcoin’s on-chain data reveals a market gearing up for impact. Momentum indicators of realized capitalization and long-term realized capitalization are flirting with critical support zones. Historically, such low levels have coincided with significant price expansions after periods of lethargy, indicating a potential surge in volatility.
Lastly, Open Interest tells its own story: leveraged positions remain very high, recently surpassing $70 billion. Such accumulation often precedes explosive moves as either long or short positions get liquidated.
Bitcoin is locked in a battle zone, with bulls aiming to reclaim ground to tip momentum in their favor. A decisive breakout above $92,500 could trigger new purchases, forcing short positions to be liquidated, potentially fueling a rapid bullish cascade.
Conversely, bears are fiercely defending this level, and a failure to hold it could unfold a sudden bearish move, overleveraged long positions getting flushed out. With Open Interest remaining high, pressure is mounting – and any breakout could trigger a chain reaction in both directions.
With anticipation of high Open Interest, pressure is building – and any breakout could trigger a chain reaction in both directions. If you’re looking to invest in Bitcoin now, the Weex platform is ideal. You currently have a welcome offer : deposit $200 and receive 50 USDT for free!
Passionate about the crypto world, he explores the blockchain ecosystem to extract the most essential insights. With his expertise in SEO and web writing, he transforms news and technical analysis into clear, engaging, and impactful content. His goal? To help investors better understand the opportunities and challenges of the crypto market.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
