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26 September, 2024

Bitcoin Price Prediction: A Volatile 24 Hours Ahead with Key Support and Resistance Levels

26 September, 2024

Bitcoin Price Forecast: A Volatile 24 Hours Ahead with Key Support and Resistance Levels

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The Bitcoin (BTC) market is displaying mixed signals, indicating potential for volatility as the price hovers between $63,000 and $64,000. Let’s delve into the technical analysis to understand what’s driving this uncertainty and what to anticipate in the coming hours.

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Technical Analysis: A Mixed Outlook

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Our analysis suggests that the market is currently balanced, with moderate liquidity. This is evident in the maximum slippage of 16.5, indicating that large trades aren’t causing substantial price swings. While a volume delta of 415.848 million signifies a slight imbalance in buy and sell orders, with more buying pressure, this is sufficient to prevent sudden price shocks.

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Hyblock Capital’s heatmap analysis reveals crucial liquidation levels. A heavy concentration of short liquidations exists around $64,500, potentially acting as a resistance level. Conversely, long liquidations are clustered around $61,000, serving as a significant support level. A breakout above $64,000 could trigger short liquidations, driving prices higher, while a drop below $61,000 could lead to cascading long liquidations.

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Open interest (OI) shows significant concentrations in the $64,200 to $64,400 range, indicating strong trader positioning. Any major movement away from this zone could result in increased volatility. The funding rate currently stands at -12.678%, signifying a dominant short position in the market. This means that short traders are effectively paying to maintain their positions.

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Whale vs. Retail Sentiment

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The bid-ask ratio is currently at 38.618%, reflecting a slightly ask-heavy market. This suggests that selling pressure outweighs buying demand, further supported by the average leverage delta of -6.67, indicating short traders are employing more leverage than longs. This reinforces a bearish outlook.

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However, the volume delta of 4.60 million is positive, indicating a net buying imbalance that could support upward momentum. Additionally, the Whale vs. Retail Delta stands at 56.681%, revealing that whales are slightly more bullish than retail traders. Since whales tend to have a greater market impact, this could influence market dynamics.

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What to Expect in the Next 24 Hours

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The current analysis presents a mixed picture. The negative funding rate and increased short leverage indicate a potential downward move. However, substantial open interest and positive volume delta suggest that a breakout in either direction is possible. Traders should prepare for volatility, particularly if liquidation zones around $61,000 or $64,500 are triggered.

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By the end of the week, Bitcoin could either break through resistance near $64,500 or test support at $61,000. A shift in funding rates to positive could further fuel upward momentum. At the time of writing, Bitcoin is trading at $63,370, experiencing minor losses of 0.3% compared to Tuesday’s trading session.

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Conclusion

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The Bitcoin market is in a state of flux, with both bullish and bearish signals. The next 24 hours are crucial for determining the direction of the price. Stay tuned for updates as we navigate this period of uncertainty.