Bitcoin (BTC) continues challenging the crucial $120,000 resistance level while targeting new all-time highs. Bearish traders are defending this zone by increasing short positions, potentially creating conditions for a significant short squeeze that could accelerate upward momentum.
The altcoin market demonstrates steady performance with gradual gains, showing reduced volatility compared to previous bullish movements.
Derivatives Market Overview
- BTC futures maintain strong bullish positioning with open interest at record highs above $32 billion. The three-month annualized basis remains elevated near 8%.
- Notable funding rate disparities appear across exchanges - Deribit shows exceptionally high 25% rates while platforms like Bybit display more neutral levels, indicating concentrated aggressive long positions.
- BTC options market signals neutrality with 24-hour put-call volume at 52.25% call dominance, reflecting moderated bullish sentiment from previous levels.
- The 1-week 25 delta skew flattens at 0.33%, suggesting balanced implied volatility between puts and calls.
- Market metrics indicate consolidation into a hesitant phase following earlier strong bullish momentum.
- Coinglass reports $380 million in 24-hour liquidations with 35% long and 65% short positions. Binance liquidation heatmap identifies $121,300 as critical level to watch during price increases.
Market Performance Analysis
By Oliver Knight
- Cryptocurrency markets advanced Friday with ETH, SOL and XRP gaining over 2%, while smaller-cap tokens ETHFI and CAKE surged 15% and 25% respectively.
- Bitcoin's approach to $120,000 supports broader market strength as the dominant cryptocurrency targets records above $124,000.
- Current movement above $120,000 shows unusual stability with tight price ranges rather than typical volatility spikes.
- Bitcoin consolidation benefits altcoins by enabling capital rotation from BTC to more speculative assets.
- Select tokens faced significant declines - MYX Finance (MYX) dropped 43% from rapid leverage unwinding.
- Plasma's XPL token struggles amid market maker shorting speculation, which founders consistently deny.