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Bitcoin and the broader crypto market performed surprisingly well over the past week. At the start of the week, the market saw more moves south in most crypto asset prices. Bears hit the market a few hours after the release of US CPI data for September.
However, almost all tokens had a reversal in the direction of the trend. The bull suddenly appeared and forced massive volatility to push the assets north.
The performance of the primary crypto asset, Bitcoin, was quiet all weekend. Bitcoin held its anchor at around $19,200 during the period. But some industry participants are wondering about a possible twist for the leading cryptocurrency.
Possible price spike with current indicators
According to indicators from on-chain platforms, BTC could soon record a more bullish trend. The sentiment is taken from the Bitcoin futures market indication.
An analyst at CryptoQuant, Dan Lim, offered some supportive explanations for this positive trend forecast. According to him, the token currently has low selling pressure in the futures market.
Lim says there has been a drastic drop in the amount of BTC transferred from spot exchange to derivatives since October. He recalled that since the drop in June, volume has continued to rise, but Bitcoin maintained its June low of $17,600. Currently, volume is plummeting, nullifying any intense selling pressure.
But Bitcoin futures funding rates have turned negative in the market. This was due to the drop in the price of BTC from $22,000 to the $19K level. Comparing these events to the 2019-2021 period, we see a decline in the statistics showing low activity and demand in the BTC futures market.
According to Greatest_Tracker, a CryptoQuant analyst, usually leads the indicator to a consolidation and range phase period. However, the analyst noted that extreme negative values could result in a short squeeze triggering a price reversal for Bitcoin.
Volatility Due to Bitcoin Futures Attitude
With the current state of Bitcoin futures, many predictions revolve around the price of BTC. But some traders anticipate increased volatility due to the market situation.
Michael Van de Poppe, a notable crypto trader, expected a price increase. However, he wrote that after four months of price consolidation; it is possible to get huge market volatility. Van de Poppe noted that some people still expect a more bearish trend, but a larger move north could be the chance.
But deteriorating global macroeconomic conditions are driving some traders to opposing views. Nicholas Merten, the founder of DataDash, said he was concerned about macro factors. He reported that the Nasdaq Composite went below its average performance for the first time in 14 years. It recorded a weekly close below the 200-week moving average.
The trader noted that the crypto market, especially BTC, will face more bearish trends in the future with such conditions.
Featured image from Pixabay and chart from TradingView.com