Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

TOP SEARCHES

Stocks popular

Crypto

Currencies

CFD

Support

Bitcoin Bulls Cautiously Optimistic Amid Price Surge and Stabilizing Trends

image
icon 13/08/24
icon 80

Bitcoin Bulls Cautiously Optimistic Amid Price Surge and Stabilizing Trends

Bitcoin enthusiasts are feeling optimistic following the price increase observed on August 8. Traders are now closely monitoring the situation, particularly watching for a decisive close above $63,000, which would confirm a bullish trend that emerged in the latter half of the previous week. However, on-chain indicators suggest that apprehension persists among traders, leading some to take a more cautious stance.

Despite the general bullish sentiment, key performance metrics imply a reluctance to commit fully. Notably, the Bitcoin Estimated Leverage Ratio (ELR), which measures the ratio of Bitcoin open interest on futures exchanges to Bitcoin reserves on major platforms, has recently declined by 1.5%. This drop often indicates that traders are exhibiting less risk by avoiding increased leverage in their positions.

Simultaneously, while both open interest and the ELR trend downward, funding rates on leveraged futures markets are maintaining a neutral stance. This neutrality suggests that the overall market remains balanced, but active traders are being conservative and adopting a wait-and-see mindset. This cautious behavior is likely to continue until traders see stronger signals indicating market direction.

Another influencing factor in the current market dynamics is the declining Bitcoin Miner Reserve. In the aftermath of the halving event on April 20, many miners have opted to sell off their holdings due to reduced revenue, resulting in a significant drop in Bitcoin prices throughout June. Miners holding fewer coins could lead to supply constraints, which may drive prices higher should demand surge, particularly from institutional players interested in spot Bitcoin exchange-traded funds (ETFs).

Amidst this volatile backdrop, the recent surge in stablecoin inflows, averaging $53 billion per day across major exchanges, comes as a potential beacon of hope. An increase in inflows from USDT and USDC into exchanges like Binance may rekindle demand, potentially igniting another rally in Bitcoin prices above critical resistance levels in the near future.

Recomended for you

image

Crude Prices Drop After IEA Monthly Report

On Wednesday, crude prices dropped and gave back earlier gains after the IEA reduced its forecast for this year’s demand...

May 15, 2024
icon 271
May 15, 2024
icon 271
prev next
This site is registered on wpml.org as a development site.