2 key derivatives metrics signal that Bitcoin traders expect BTC to hold $40K
The entire crypto market is green on Feb. 28, and derivatives metrics suggest that BTC's bullish reversal will flip $40,000 back to support. Whenever Bitcoin (BTC) fails to break through important resistance levels, traders gain confidence and add to their altcoin positions. The logic is that, unless BTC drops significantly, these movements historically provide decent rewards for those shifting their portfolios toward higher risk.Bitcoin/USD at FTX. Source: TradingViewIn the past seven days, the aggregate market capitalization performance of the cryptocurrency market showed a modest 3%....
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Traders expect BTC to flip $40,000 back to support soon, but derivatives metrics signal that a different outcome could occur. The Bitcoin (BTC) daily price chart seems to be making a steady recovery pattern, but some concerning indicators are coming from derivatives markets. At the moment, the futures and options markets are showing a lack of confidence from Bitcoin pro traders, but there's a positive spin to the data.Bitcoin price at Coinbase, USD. Source: TradingViewThe road to $40,000 seems uncomfortably predictable, and cryptocurrency traders usually call it "manipulation" when such....
BTC traders are still searching for a bottom, but derivatives metrics show sentiment is negative and even the rally to $40,000 had little impact. Bitcoin (BTC) might have tested the $40,000 support in mid-July, but according to various derivatives metrics, there has not been a significant change in investor optimism. This situation either means that price is not what they are looking to mark the end of the current bear market, or that most traders are still underwater at $40,000.One of the best measures of optimism is the futures market premium, which measures the gap between longer-term....
Ethereum futures data suggests that pro traders believe $3,500 ETH is the next stop for the top altcoin. As Ether (ETH) made a $2,800 all-time on April 29, so did its futures open interest. The $8.5 billion figure marks a 52% monthly increase and shows robust trading activity behind the meteoric price rise.Some analysts might dismiss Ether derivatives, considering CME's future has $355 million in open interest compared to Bitcoin's $2.4 billion. However, Ether contracts were only launched a couple of months ago. Both FTX and Deribit require 100% full-KYC for their clients, and these....
Data shows Ethereum options traders are less bearish than before, but lower gas fees and smart contract deposits give ETH bulls little hope. Ether (ETH) price is up 60% since May 3, outperforming leading cryptocurrency Bitcoin (BTC) by 32% over that span. However, evidence suggests the current $1,600 support lacks strength as network use and smart contract deposit metrics weakened. Moreover, ETH derivatives show increasing sell pressure from margin traders.The positive price move was primarily driven by growing certainty of the "Ethereum merge" transition to a proof-of-stake (PoS)....
While the price of bitcoin has spiked to levels not seen in three years a number of other factors show that the current run-up is similar to the 2017 bull run. Active bitcoin addresses have neared all-time record highs, while the network’s hashpower has remained high as well coasting along at 130 exahash. Moreover, bitcoin derivatives markets have crossed record levels as well as open interest in options, and futures have never been so high. Following a 1,079 day wait, on November 30, 2020, BTC broke its record price high that was recorded in mid-December 2017. Since then, BTC has....