BTC exhibits three major data changes before posting a significant price change. Per data from CryptoQuant, the bullish sentiment of BTC is already overtaking the perpetual futures market. The coin has also been gaining price while equities perform rather weakly.
Could The Bulls Be Preparing For A BTC Rally?
The coin has posted minimal significant sell-offs, indicating weakened selling pressure for the past few weeks. These signs may indicate that BTC bulls are gaining a hedge over its bears.
A recent analysis of BTC data
describing three main signals indicates that bulls could be gaining power. The coins market
sentiment is already overtaking the perpetual futures market. It is also performing better than equities in terms of the price surge. BTC has also had minimal major sell-offs showing that the selling pressure may be subsiding, and the bears are getting tired of pushing its support level lower.
In the past two weeks, the BTC futures showed an advantage in the short market positions. Its fund rate was almost negative throughout. The period also posted a little short squeeze with about $30M done in an hour with liquidations.
shows that the taker buy/sell ratio has crossed the 30 Day-Moving Average (MA) 1.01. This trend means that investors are trading the coin at its market price. The selling pressure is also on a downtrend. Even though this is not the end of BTC’s price correction, it signifies that more investors are buying than selling.
BTC’s Current Trend and What to Expect in the Overall Market
Even though weekends are red for cryptocurrencies, BTC
is showing recovery signs. The coin is currently trading at $41.5k. Even though this breakout is encouraging, the coin is not yet safe from its bears.
However, it has been performing well compared to equities since its price has surged while equities are trading weakly. This trend has been a rare signal over the past months. Both the prices of assets on the S&P 500 and NASDAQ-100 are green. This development suggests that the price surge of BTC may be artificial and may not necessarily stick for long.
Given that the FEDs now have the green light of tightening the stock markets and the stocks are still green, it shows that even BTC may decouple from them. If the coin decouples from these assets, it will be a breakout that can sustain. However, the market is yet to gain stability and will likely be volatile in the coming days.
The coin is also posting relatively good signs of recovery
through a few major sell-offs. The CDD(Coins destroyed days) levels are down. However, the spot reserves are not yet deployed since it is currently on the sidelines. The coin is still missing high demands, but it may hit such a level if its bulls sustain their current momentum.
Yesterday, Crypto.news reported
that other Altcoins like ETH, AVAX, DOGE, and SOL are also exhibiting signs of recovery. The coins exhibit signs of bulls taking control even though the bears are yet to be weakened. This analysis shows that the market may continue being volatile in the coming weeks, but the next months may be positive.