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The price of Bit is showing signs of weakness after failing to establish a new higher high following the drop below $95,000 last week. Price rejection occurred in the $98,000 to $99,000 range as BTC tends to retest the most recent support level at $95,000. Data from CoinGlass shows that the open interest (OI) of Bit has decreased from $64 billion to $58 billion, a 9% drop from the previous week.
However, the OI ratio relative to the perpetual BTC/USDT Futures Contract is still at a higher leverage level compared to the peak in March 2024. The chart shows that the OI ratio on USDT reserves for the Futures pair is still double the March 2024 all-time high (ATH) level. Therefore, the Bit Futures market remains in a high leverage state, with the potential for a sharp Dump despite the decrease in OI last week.
BingX Bit Chart
BingX Bit Chart 1D on 04/12/2024 | Source: TradingView & BingX
The consolidated order book across centralized platforms shows large sell orders around the $110,000 level, but they have not yet been triggered. As long as this sell wall remains unbroken, the potential for a price reversal before a large order like this could cause potential Longing traders to stand aside, as they perceive the risk-reward ratio to be limited on the upside.
Technically, the 4-hour chart of Bit has confirmed a double-top pattern with a basic trendline at $95,000. If the daily candle closes below the $95,000 mark, there is a high likelihood of another Dump towards the $92,000 and $90,000 zones. The Relative Strength Index (RSI) also shows rejection below the 50 level, indicating that selling pressure is increasing.
While the 100-day EMA (green line) is the immediate support, history shows this to be a weak reversal point if tested in the short term (the 100-EMA was tested once last week). Short-term corrections down to the $90,800 level are a technical target from the double-top pattern, but prices could also sweep through the critical Liquidation zone below $90,000.
The current support for BTC is $94,000 and the resistance is $98,000.
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