According to data from Tradingview, the BTC/USD pair surged as high as $49,821 on Coinbase this Sunday. The current high is the highest the coin has attained in the past 90 days. Recent price movement suggests that the weekends are the most bullish part of the week as Bitcoin continues to break critical resistance during this time.
As the king coin edged closer to $50,000, the bulls were delighted to see the new development, oblivious of what was brewing in the derivative market. When BTC reached its intraday high it failed to hit $50,000 as the strength of the uptrend was not enough due to the derivative market.
The Derivative Market
As the coin slowly climbed traders trading futures slightly became bearish. The actions of these traders gradually mounted pressure on the largest crypto; slowing it down. Bitcoin came to a complete stop as the pressure intensified. As of that time, the total number of open short orders was 53% as opposed to 47% according to bybit.
Market conditions haven’t fully recovered from the bearish takeover, as of the time of writing. The result is that the BTC/USD pair has been on the decrease since and have not improved. The last hour saw the king coin lose 0.5% of its value.
Bitcoin volatility has no doubt reduced. The drop in volatility is evident in its reaction to a 42% drop in trading volume over the last 24 hours according to Coingecko. Before now, a massive drop in trading volume would spell a 5-10% price drop for the king coin.
As we go into a new week, BTC may continue to experience price correction until Wednesday; which, based on recent price movement has seen the largest crypto enjoy increased price surge. Unfortunately, as of the time of writing, more than $150 million worth of long positions have been liquidated over the past 24 hours.
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