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ZEC $260.31 -8.86%
BTC $74,563.03 +0.52%
ETH $2,338.65 +0.14%
BNB $673.58 -0.82%
XRP $1.42 -4.56%
SOL $81.67 -4.53%
TRX $0.2795 -0.47%
DOGE $0.0974 -3.83%
ADA $0.2735 -4.22%
BCH $476.46 -0.57%
LINK $8.64 -2.97%
HYPE $28.98 -1.81%
AAVE $122.61 -3.42%
SUI $1.03 -2.98%
XLM $0.1605 -4.62%
ZEC $260.31 -8.86%

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Analyst: Bitcoin remains resilient amid market turbulence, as market consolidation clears leverage to pave the way for the next round of upward movement

Coindesk analyst Omkar Godbole stated that Bloomberg has reaffirmed its prediction: Bitcoin could drop to $10,000------a price level not seen since mid-2020. Industry observers believe this prediction is overly absurd.However, on the largest crypto options trading platform Deribit, about $800 million in open positions are concentrated on $20,000 put options, betting that the price will fall below that level. This is the fourth most popular bearish bet on the platform. This indicates that some traders are preparing for a possible crash. But Deribit stated that not all positions are direct bets against a price crash.Deribit’s Global Retail Sales Head Sidrah Fariq said, "Most positions are more like selling put options rather than directional long hedges. Traders often sell out-of-the-money put options because the probability of reaching those levels is low." Meanwhile, Bitcoin has shown remarkable resilience, maintaining around $70,000 even as crude oil prices rebounded, pushing benchmark oil prices close to $100 in the early session, shaking traditional markets. Ethereum, XRP, and SOL have also remained strong, while HYPE tokens rose about 10% within 24 hours.Analysts say that excessive leverage is being cleared from the Bitcoin market, paving the way for price increases. Diana Pires, Vice President of Sales at crypto platform sFOX, stated in an email, "From a market structure perspective, this consolidation could be constructive, as reducing leveraged positions often lays a more stable foundation for the next wave of movement once clearer macro catalysts emerge."

Analysis: Bitcoin buying pressure is returning, and a breakthrough above $78,000 is needed to reverse the downward trend

According to Cointelegraph, CryptoQuant data shows that as the demand for Bitcoin derivatives rebounds, the net buying volume of Bitcoin indicates that buyers are entering the market. Net buying volume is an indicator of the imbalance of power between active buyers and sellers in the derivatives market, and it has remained positive since the outbreak of the US/Iran war. This positive trend aligns with Bitcoin's recent price rebound to $74,000, indicating that demand in the derivatives market has returned.Coinbureau CEO Nic added, "This shows that the buying volume has surpassed the selling volume, and buyers are taking control of the market." TradingView data shows that Bitcoin has consolidated in the $62,000 to $72,000 range for over four weeks, with multiple attempts to break through $70,000 failing. From a broader perspective, the BTC price remains between the realized price (the average purchase cost of all circulating supply at $54,400) and the real market average price (the cost basis of actively traded coins at $78,000).Glassnode stated, "In the absence of broader macro headwinds, this range may support a bear market relief rally, with its upper limit constrained by the real market average price."Charts show that BTC prices have spent most of 2023 between these two cost levels, with relief rallies repeatedly stalling near the real market average price. Ultimately, in October 2023, with the announcement of the approval of the US spot Bitcoin ETF, the price broke through.Crypto trader and analyst Titan stated that if the BTC price breaks through the $78,000--$80,000 range, it could signal a change in the long-term trend.
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