Bitcoin Market Analysis: Key Price Levels And Metrics To Watch

News BTC

As the Bitcoin market navigates the choppy waters around $26,000, there are several metrics to keep an eye on. After hitting a low of $25,374 yesterday, the bulls have managed to push the price back up, although the market remains in a vulnerable state following last Thursday’s price crash.

Currently, the Fear and Greed Index for Bitcoin sits at 37, which is indicative of strong fear permeating the market. Typically, such a low level on this index suggests that market participants are apprehensive about the near-term future, often leading to a self-fulfilling prophecy of sorts where the selling pressure increases.

How To Get Free Crypto  

An In-Depth Look At Bitcoin CVDs & Delta

Renowned analyst Skew has highlighted the role of Cumulative Volume Delta (CVD) in understanding the current market dynamics today. “BTC Aggregate CVDs & Delta reveal limit spot sellers here with shorts pushing for control.” This means that even as traders are looking to buy at market prices (takers), those willing to sell are setting limits, adding a ceiling to any short-term bullish momentum.

The specific price point to note here is $26,100. “This level has acted as a magnet for limit sellers,” Skew notes, “and is backed by the pattern seen in spot CVD versus price so far.” In other words, spot takers are being absorbed by limit sellers at this price, constraining upward movement.

Bitcoin Aggregate CVDs | Source: Twitter @52Skew

Perpetual CVD (Perp CVD) also deserves attention as it “moves lower in line with longs closing out and new shorts coming in.” This suggests that traders are not only covering their long positions but also opening new short positions, in line with the current bearish price action.

Examining specific exchanges like Binance and Bybit gives further granularity to the analysis. According to Skew, “Longs got rinsed in that sweep below $25,800, thereby marking that level as a key pivot point.” Open Interest (OI) on Binance saw a reduction of 6,000 BTC, and Bybit OI was down by 3,000 BTC – all in long positions that were liquidated.

Coinbase Banner  

The liquidation of longs at these levels presents a clear risk for any bullish scenarios. “Clear risk for longs is below $25,800,” Skew asserts, making it an essential level to watch for traders who are net long.

MacroCRG, a renowned market analyst, added to the analysis that large amount of longs were liquidated again during yesterday’s BTC dip: “More pain for #Bitcoin longs as another $300M+ of open interest was wiped out overnight by a downside sweep. When will it end?”

However, there could be a silver lining, as Skew puts it: “Likely to see apes rage shorting this soon.” But so far, Bitcoin’s open interest (OI) remains flat after Thursday’s flush. OI currently stands at $10.88 billion (after being above $14 billion).

Bitcoin Open Interest | Source: Coinglass

BTC’s OI-weighted funding rate has already turned positive again at +0.0060. If the value turns negative for several days, as it did before the March 2023 rally, it could be a sign that a short squeeze is on the cards. However, after Thursday’s crash, the metric remained in negative territory only for a short time.

FreeBitcoin Banner  

BTC OI-Weighted Funding Rate | Source: Coinglass

BTC Short-Term Holders and Velocity

On-chain specialist Axel Adler Jr. points out that the short-term Bitcoin holders (STH) cohort has decreased their holdings by a significant 400,000 BTC. This mass exodus has put considerable selling pressure on the market, rendering many STHs “underwater” and thereby less likely to engage in bullish behavior.

Moreover, Adler emphasizes the BTC Velocity metric, stating, “At the beginning of this year, the BTC Velocity metric dropped to its minimum level.” This extremely low velocity indicates not just low volatility, but also a lack of market participant activity – a concerning sign for any imminent bullish turn. Therefore, Adler concludes:

Taking into account these two factors, as well as the fact that the STH cohort has traditionally been the primary player creating volatility in the BTC market, recovery after this drop will require more time than usual and may take an indefinite period.

At press time, BTC traded at $26,114.

BTC at crucial support, 1-day chart | Source BTCUSD on

Featured image from iStock, chart from

Go to Source
Author: Jake Simmons

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.