Bitcoin, Support-Resistance Flip..."If it crosses now, bull market resumes"

▲ Bitcoin (BTC)/ChatGPT generated image

Bitcoin (BTC) is entering a critical phase where key support and resistance levels are flipping, with bullish signals detected in the derivatives market.

According to crypto media outlet Cointelegraph on April 27 (local time), Bitcoin has entered a 'support-resistance flip' zone at key price levels, where a previous resistance line is turning into a support line. This zone is a critical turning point that determines the direction of the trend, and if the support conversion is successful, the upward trend could strengthen.

In the derivatives market, a shift in delta between long and short positions leaning towards the bullish side has been observed. This indicates that investors are betting more on an upward direction, signaling a short-term optimistic shift in market sentiment.

At the same time, the options market is also showing preparations for downside risk. Some investors are adopting a two-way strategy, considering the possibility of increased volatility even amidst bullish expectations. This shows that the current market is in a transitional phase before a definitive direction is established.

Recently, some deleveraging of leveraged positions has been observed, easing overheated speculative demand. This is considered a preparatory stage for future price movements to take on a more structural direction.

Bitcoin is situated in a transitional zone where technical structure and derivatives data are converging. Whether the support conversion is successful is expected to be a key variable determining the continuation of the upward trend.

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