Bitcoin, Ethereum: Two Levels Where Swing Trade Can Be Profitable

  • Ethereum has a slightly more bullish bias for the coming week.
  • The Bitcoin consolidation phase was still ongoing, and the chances of revisiting $60k were looking higher.

Bitcoin [BTC] Traders were going through a relatively tough time after the easy, straightforward rallies that had been going on since last October.

Ethereum [ETH] Has become more complicated, but the BTC halving event last month has changed market conditions with cut and limit formations across the market.

AMBCrypto examined how market sentiment was looking over the weekend, and where this week's price action could be headed.

Speculators expect bullish returns in the near term on either side

bitcoin coinalize

Source: Coinalize

Bitcoin Open Interest saw an increase on May 10, but OI has been in a downward trend since the price surge on May 6.

Meanwhile, the price also made a series of lower highs over the past week, falling from $64k to $61.1k at press time.

The funding rate was negative in early May when Bitcoin fell to $56k. Since then, the funding rate has improved.

However, over the past few days, it has remained barely above zero, indicating that sentiment was not very bullish.

Ethereum Coinalize

Source: Coinalize

Ethereum also saw funding rates slip into negative territory in early May, but has since recovered. Last week's downtrend saw the funding rate baseline hovering around +0.01 points.

A slight bounce from $2980 to $3040 on May 9 saw an increase in open interest and funding rates.

This was not repeated with Bitcoin despite a similar price surge, suggesting that speculators were more eager to long ETH than BTC.

What are the next liquidity areas that may attract prices?

bitcoin liquidation level

Source: CryptoQuant

Bitcoin's 7-day liquidations heatmap showed a bright cluster of liquidations in the $60k area. To the north, $61.8k and $63k are the next bullish targets.

On May 5, we saw prices move above the $64k mark to gather liquidity before a brutal short-term reversal.

Similarly, we could see a drop to the downside to collect liquidity near $60k before returning to higher levels on Monday. Therefore, BTC traders will look to buy the dips in the $50.6k-$60k area.

However, traders should also be prepared for BTC to drop below $59.4k, and set their stop-loss accordingly in case of a drop to $60k.

ETH liquidation level

Source: CryptoQuant

read bitcoin [BTC] Price Forecast 2024-25

Ethereum, on the other hand, has a bunch of liquidity just north of $2950. This was close to the current market price of $2928. A drop into the $2860 area would potentially provide a buying opportunity.

Liquidation levels around the $3.1k-$3.2k area present an attractive target. A drop below $2.8k would likely initiate a strong short-term decline, and traders could cut their losses in this scenario.

Leave a Comment

“The Untold Story: Yung Miami’s Response to Jimmy Butler’s Advances During an NBA Playoff Game” “Unveiling the Secrets: 15 Astonishing Facts About the PGA Championship”