Bitcoin is currently trading at approximately $75,440, as it tests the $76,000 resistance level for a third consecutive day. Data from CoinGlass indicates that bullish traders are making efforts to navigate through nearly $450 million in sell orders situated between $75,900 and $76,300. This selling pressure primarily stems from traders anticipating a downturn to around $68,000 and those aiming to safeguard against a potential breakout, which carries liquidation risks above these levels.
In related financial news, U.S. equities reached record highs on Thursday, buoyed by expectations that the conflict in Iran may be de-escalating, particularly following a recent ceasefire involving Israel and Lebanon. Interestingly, the cryptocurrency market has outperformed equities since the onset of the war, although it now appears to be taking a back seat amid this positive equity momentum.
The crypto futures market has seen an uptick in activity, with Bitcoin briefly surpassing the $76,000 mark during European trading hours. Total market volume surged by 28%, reaching $225.8 billion, while open interest increased by over 1.5% to $126.68 billion. More significantly, total liquidations spiked by 140% to $529 million, with slightly more short positions than long ones, suggesting a mild short squeeze and potential upward pressure.
Among the major cryptocurrencies, Solana has shown notable growth in open interest, with a recent 11% increase in active contracts, bringing totals to 5.53 billion SOL, the highest since mid-March. Dogecoin has also been a highlight, with open interest nearing a six-month peak of 14.17 billion DOGE. Solana appears to be attracting capital inflows driven by a growing bullish sentiment, as evidenced by positive funding rates and a strong cumulative volume delta (CVD) showing aggressive buying. In contrast, signals for Dogecoin present a mixed narrative; while the CVD indicates buying pressure, slightly negative funding rates hint at ongoing bearish sentiment among derivatives traders.
Cardano is showing strength on an open interest-adjusted CVD basis, reflecting significant buyer dominance and bullish positioning within the market. Amid this activity, overall market volatility has decreased, indicating a calmer atmosphere that could support further bullish price action. Bitcoin’s 30-day implied volatility index has slipped to a two-and-a-half-month low of 43.35%, while Ethereum’s index hovers around a recent low of approximately 65%. On Deribit, options for both BTC and ETH continue to favor put options, revealing lingering concerns about potential downside risks.
As traders remain cautious, altcoins are trailing behind Bitcoin, with many awaiting a significant breakout or rejection before committing to speculative positions. The CoinDesk 5 (CD5) Index, heavily weighted towards Bitcoin, has risen by 0.8% since midnight UTC, whereas the CoinDesk 100 (CD100), more focused on altcoins, shows a slight decline. The CoinDesk Memecoin Index (CDMEME) has performed the worst, down about 2.8%, as numerous tokens pulled back from their recent gains.
The “Altcoin Season” indicator from CoinMarketCap currently stands at 37/100, indicating a neutral sentiment after previously hitting 53/100 last month and 19/100 in February. While the broader altcoin market remains relatively subdued, some smaller tokens have reported noteworthy gains, with KAS up 3.9%, PENDLE increasing by 3.5%, and AERO rising by 2.5%.
