Bitcoin, Ethereum: Two levels where a swing trade could be profitable

  • Ethereum has a slightly more bullish bias for the week ahead.
  • Bitcoin’s consolidation phase was still ongoing and a return to $60,000 was becoming more and more likely.

Bitcoin (BTC) traders were going through a relatively tough time after the easy, straightforward rallies that have been the norm since last October.

Ethereum (ETH) has been more complicated, but the BTC halving last month changed market conditions to split and spread formations across the market.

AMBCrypto looked at what market sentiment looked like over the weekend and where this week’s price action could be going.

One of the two has speculators expecting short-term bullish returns.

Bitcoin Coinanalyser

Source: Coinalyse

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

Meanwhile, the price has also formed a series of lower highs over the past week, dropping from $64,000 to $61.1,000 at press time.

The funding rate was negative in early May when Bitcoin fell to $56,000. Since then, the funding rate has recovered.

However, in recent days it was barely above zero, indicating that sentiment was not strongly bullish.

Ethereum Coinanalyzer

Source: Coinalyse

Ethereum also saw its funding rates fall into negative territory in early May, but has since recovered. Last week’s downtrend saw the funding rate hovering around the benchmark mark of +0.01.

A slight rebound from $2,980 to $3,040 on May 9 saw open interest and funding rate increase.

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

What are the next pockets of liquidity that could attract prices?

Bitcoin Liquidation Levels

Source: CryptoQuant

Bitcoin’s 7-day liquidation heatmap showed a bright cluster of liquidations in the $60,000 zone. To the north, $61.8k and $63k are the next upside targets.

On May 5, we saw prices break through the $64,000 mark to collect liquidity ahead of a sharp short-term reversal.

Likewise, we could see a dip lower on Monday to collect liquidity at $60,000 before rebounding higher. Therefore, BTC traders would like to buy the dip in the $50.6k to $60k region.

However, traders should also prepare for a move below $59.4k for BTC and set their stop-losses accordingly in the event of a decline to $60k.

ETH Liquidation Levels

Source: CryptoQuant

Read Bitcoin (BTC) Price Prediction 2024-25

On the other hand, Ethereum has a nearby liquidity pool to the north at $2,950. This was close to the current market price of $2,928. A decline towards the $2,860 region would likely present a buying opportunity.

Liquidation levels around the $3.1k to $3.2k zone present an attractive target. A fall below $2.8k would likely herald a strong short-term downtrend, and traders can cut their losses in this scenario.

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Sara Adm

Aimant les mots, Sara Smith a commencé à écrire dès son plus jeune âge. En tant qu'éditeur en chef de son journal scolaire, il met en valeur ses compétences en racontant des récits impactants. Smith a ensuite étudié le journalisme à l'université Columbia, où il est diplômé en tête de sa classe.Après avoir étudié au New York Times, Sara décroche un poste de journaliste de nouvelles. Depuis dix ans, il a couvert des événements majeurs tels que les élections présidentielles et les catastrophes naturelles. Il a été acclamé pour sa capacité à créer des récits captivants qui capturent l'expérience humaine.
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