Bitcoin (BTC) price stays constant over the weekend 19,200 remained at dollar levels. Investors are largely confused about where Bitcoin might go next.
Bitcoin (BTC) Futures Show Selling Pressure Reducing, Will Price Rise Soon?
Dan Lim, analyst at CryptoQuantHe pointed out that Bitcoin is facing less selling pressure in the futures market and said:
The amount of Bitcoin sent from the spot exchange to the derivatives exchange has been falling sharply since the beginning of October.
This volume has continued to rise since the June drop, but Bitcoin has retained its June low of $17,600 and volume is now dropping rapidly, reducing the possibility of strong selling pressure.
However, at the same time, Bitcoin futures funding rates in the futures market turned negative as the BTC price slumped from $22,000 to $19,000.
Compared to the period 2019-2021, these metrics are very low, indicating a huge lack of demand and activity in the futures market.
Another CryptoQuant analyst Greatest_Traderexplains that such an indicator often results in a period of “consolidation and range phase”. He also continued:
“… excessively negative values increase the likelihood of a short-term squeeze and could cause a reversal in the price of the cryptocurrency.”
Bitcoin Futures and Volatility
As market experts predict which way Bitcoin will move, some investors expect more volatility ahead. Popular crypto trader Michael Van de Poppe said:
After four months of consolidation, it’s only a matter of time before the big volatility returns to the markets. The majority still assume that we will continue to go downhill with the markets, but I think the possibility of upward momentum has increased.
However, as global macro conditions worsen, there are investors who take an opposite approach. Nicholas Merten, founder of DataDashshared a worrying view from a macro point of view. Merten said:
The Nasdaq Composite closed a week below the 200-week moving average for the first time in 14 years. This was a pivotal moment for the two previous bear markets of 50 and 80 percent in 2000 and 2008 Bitcoin has never experienced anything like this, so expect to suffer a lot more.
*Not investment advice.
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