Over the weekend, Bitcoin broke past $80,000, kicking off a strong upward trend. Ethereum followed by climbing above $3,200, and Solana reached $210. Other altcoins also saw big gains.

On the other hand, In the past 24 hours, market liquidations topped $600 million, with both long and short positions losing about $300 million each. This surge shows a clear shift in market mood, with more people feeling optimistic.

Key Indicators to Track

According to Ryan Lee, Chief Analyst at Bitget Research, one of the most crucial indicators right now is the funding rates for contracts, particularly in the derivatives market. As Bitcoin’s price climbs, short liquidations have intensified, which has led to a deviation in funding rates for long positions in BTC, ETH, and SOL.

These rates, which are typically annualized at 10%, have begun to rise. If this trend continues, it could signal that more market leverage is being used, increasing the likelihood of significant market corrections.

Another aspect to monitor is how Bitcoin’s price action is affecting altcoins. Although Bitcoin surpassed $80,000 in the last 24 hours, altcoins like Ethereum and Solana have not shown the same rebound in exchange rates. This suggests that Bitcoin is absorbing liquidity, tightening funds in the market. As a result, we may see increased volatility in the derivatives market as liquidity becomes constrained.

Understanding Market Sentiment Through Options Pricing

In the options market, the price of Bitcoin call options has surged, significantly outpacing the cost of put options. This shift indicates a strong bullish sentiment, with the market increasingly expecting further upward movement.

Outlook for the Week

According to the report, traders are to anticipate continued volatility in both Bitcoin and Ethereum. BTC is expected to range between $76,000 and $85,000,while Ethereum may fluctuate between $2,800 and $3,500. Given the heightened market volatility, it’s important for traders to approach leveraged positions with caution and to consider taking profits based on real-time market conditions

Disclosure: This article should not be considered as trading advice. Trading involves risks, and readers are encouraged to conduct their own research and seek professional guidance before making any investment decisions.