Bitcoin price drops to $43.5K, but data and BTC’s market structure project strength

  • 📰 Cointelegraph
  • ⏱ Reading Time:
  • 81 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 36%
  • Publisher: 51%

Brasil Notícia Notícia

Brasil Últimas Notícias,Brasil Manchetes

Bitcoin price dropped below $43,500, but noshitcoins says whale accumulation, the futures premium and options market data signals a buying opportunity.

, according to data from Glassnode. These investment vehicles in Canada have increased their holdings by 6,594 BTC since January to a historical high of 69,052 BTC under management. Currently, the Purpose Bitcoin ETF, a spot instrument, currently has $1.68 billion worth of assets.acquire $3 billion worth of BTCCoinMetrics data shows that the active 1-year Bitcoin supply reached 36.8% on April 5, its lowest level since September 2010.

The Bitcoin futures annualized premium should run between 5% to 12% to compensate traders for"locking in" the money for two to three months until the contract expiry. Levels below 5% are extremely bearish, while the numbers above 12% indicate bullishness.The above chart shows that this metric dipped below 5% on Feb. 11, reflecting traders’ lack of demand for leverage long positions. The sentiment changed on March 26 after the basis rate regained the “neutral” 5% threshold.

If those traders fear a Bitcoin price crash, the skew indicator will move above 10%. On the other hand, generalized excitement reflects a negative 10% skew.Data shows that the skew indicator has been ranging between 0% and 8% since March 9. Albeit not signaling fear, these options traders are overcharging for downside protection. From the BTC options markets perspective, there's a slightly higher risk for unexpected downward price swings.

The neutral-to-bearish Bitcoin derivatives data offers an interesting opportunity for bulls. If somehow the $47,000 resistance is broken, this will be a surprise for most investors. Two positive effects will arise from that event: a short squeeze from derivatives markets and room for buyers to use futures for leverage.

If Bitcoin’s futures premium had been running above 10%, traders would face a much higher cost to add long positions. Bulls seem better prepared to deal with the $47,000 price resistance considering the sound market structure that is marked by the absence of exaggerated buyers’ leverage and this provides better odds of success.

 

Obrigado pelo seu comentário. Seu comentário será publicado após ser revisado.
Resumimos esta notícia para que você possa lê-la rapidamente. Se você se interessou pela notícia, pode ler o texto completo aqui. Consulte Mais informação:

 /  🏆 562. in BR

Brasil Últimas Notícias, Brasil Manchetes