Until finally Bitcoin breathes! Some will say, and after the surprising play of the bulls. The truth is that in recent days Bitcoin has behaved in a surreal way, which makes many short-term investors think that the game is positive and that is precisely what we want to talk about.
Spot Volume Does Not Beat With Derivatives
An irrational phenomenon that occurred after the immense inflation of the price of Bitcoin that took it from $32k to almost $45k, was that for the most part the trading volume of the spot market failed to keep up with the trading volume of the derivatives market.
For some this aspect seems negative, but for others not so much. The truth is that from our perspective when the spot market does not achieve the above, it means that the interest or appetite for futures contract negotiations is greater than normal leveraged negotiations.
On the negative side of the issue, we saw that the rumors of the strong approval of investment funds (ETFs) caused many to FOMO the situation. That triggered a large negotiation of leveraged operations and consequently, a portion of inflation summarized in the high seen in recent days.
We can conclude from this that trading volumes are still low and within a transition period of the accumulation and pre-halving phase.
Furthermore, the futures market is gaining more territory every day and leaving aside conventional traders who maintained their positions for a certain period of time.
Congruent Points
The dominant aspect of the case is the succession of liquidations that in proportion continue to accumulate above $45k for the monthly period, meaning it is a strong area of appetite to break psychological resistance.
For now, it is worth noting the region of $37258.96 as important support in case the price of Bitcoin continues in its natural phase.
See you next time...
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