Bitcoin price battles for $63K support amid warning bulls 'complacent'

Bitcoin price battles for $63K support amid warning bulls ‘complacent’

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Bitcoin (BTC) attempted to hold higher on April 30 as an institutional landmark in Hong Kong boosted momentum. 

BTC/USD 1-hour chart. Source: TradingView

Hong Kong ETFs deliver BTC price relief

Data from cryptodirectories Markets Pro and TradingView showed local highs of $64,714 on Bitstamp after the daily close.

This coincided with the launch of new spot Bitcoin exchange-traded funds (ETFs) in Hong Kong — an important moment for the industry in Asia, where conditions have rarely fostered Bitcoin as a mainstream asset.

“Although the structural flows are dwarfed by the US ETFs (naturally as the world’s largest economy) this shows a dramatic shift in stance from the East, than what it had been only just a few years back,” financial commentator Tedtalksmacro wrote in part of recent commentary on X (formerly Twitter).

“Slowly, than all at once. We are right on track for BTC to continue it’s growth into a global, macro asset.”Source: Adam Back

Adam Back, co-founder and CEO of Blockstream, noted positive differences between the Hong Kong setup and the first months of the United States’ spot ETFs, which began trading in mid-January.

BTC price action thus received some healthy relief after beginning the week at lows of under $62,000.

Popular trader Daan Crypto Trades revealed a breakout from a falling wedge that was now in the process of being retested as potential support.

BTC/USD chart. Source: Daan Crypto Trades/X

Continuing, Keith Alan, co-founder of trading resource Material Indicators, queried whether the ETFs alone could affect longer-term change in price behavior. He noted that the Federal Reserve decision on interest rates would take place on May 1, an event typically preceded by sellside pressure on crypto.

“Will Hong Kong bulls stampede through resistance at $65.5k or will they take a more tempered approach and wait for the Monthly Close and Wednesday’s remarks from #FED Chair Powell to set the tone for May?” he summarized to X followers.

An accompanying chart showed major areas of liquidity on the Binance BTC/USDT order book.

BTC/USDT order book liquidity on Binance. Source: Keith Alan/X

Funding rates support Bitcoin leveraged longs

Across derivatives platforms, meanwhile, funding rates remain skewed slightly negative.

Related: Worst month since 2022 bear market? 5 things to know in Bitcoin this week

While the lack of excess was encouraging, for trading suite DecenTrader, the implications could point to overall fickle market conditions. Traders, it suggested on the day, could still bet just as easily on higher or lower next.

“Bitcoin’s weighted average funding rate continues to dip negative as price chops around,” it wrote alongside its own chart.

“The market appears to be unsure of the next breakout direction.”Bitcoin weighted average funding rate. Source: DecenTrader/X

In the latest edition of its “London & New York Color” market updates sent to Telegram channel subscribers on April 29, trading firm QCP Capital likewise acknowledged funding being in limbo.

“Although short-term realised volatility is indeed depressed given the tight spot range, the market is possibly overly complacent given prevailing macro developments (Middle East conflict, potential US stagflation, Yen weakness, US fiscal injection, etc),” it warned.

“Perp funding is largely flat with many Altcoins showing negative funding which opens up a path for speculators to build leveraged long positions.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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