The crypto space is getting super exciting again with huge news dropping from different parts of the world. Over in asia, japan just made a massive regulatory move by officially passing a bill that opens the door for crypto ETFs and slashes crypto taxes from a heavy 55% down to just 20%. This puts a lot of pressure on the united states as they still struggle to get their regulatory acts together. Meanwhile, microstrategy is not slowing down at all because they just declared they will keep buying BTC for the long haul to remain the biggest corporate holder regardless of any short term market shakes.
These massive fundamental drivers are fueling a wild run in the derivatives market. Checking the latest stats on major platforms like binance and OKX, top traders are heavily leaning bullish with long or short ratios sitting between 1.17 and 1.47. This extreme optimism did trigger a squeeze though, as over $58.78 million in futures positions got completely rekt over the last 24 hours, with short sellers taking the heaviest hit as the market pushed up. The trading activity is absolutely massive, with binance recording a stunning $12.39 billion in daily volume and OKX following behind with $6.38 billion.
Looking closely at the funding rate on coinglass, the chart is painted with a very dominant green block from june through july. This shows us that buyers are highly aggressive and do not mind paying premium fees to keep their long positions open. We also saw a significant volume expansion in mid july right after a quiet couple of days. This volume spike combined with the BTC price climbing up to $64.950 tells us that genuine buying demand is stepping in rather than just a quick artificial pump.
On the daily tradingview chart, the price action is currently battling right at the SMA 50 line while the stochastic indicator is pushing deep into the overbought territory. The daily volume bars show some fluctuation but we can clearly see bulls are trying hard to defend this level and keep the price from falling back under the key moving average.
My Opinion
If you are wondering whether we will smash through the local resistance right away, the market probably needs to breathe first with a quick consolidation or a light pullback. Retesting the FVG zone feels like a necessary step to build a stronger base before the market can gather enough momentum to target the next major resistance level between $73.060 and $74.265.
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Source
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