Cryptocurrencies

These key metrics show traders are bullish – Cryptocurrencies

Bitcoin Futures

Can we now hope for a Bitcoin (BTC) never again below 15,000 USD? The recent Thanksgiving crash showed that bears were able to pull BTC down to the $ 16,000 level when its price suffered a major correction. Bitcoin managed to stay above $ 18,000 during the first 10 days of December 2020, despite some forays below this level. Further rise, consolidation, correction in sight: what are the key indicators saying today about a BTC just miles from $ 20,000?


A Bitcoin season in the absence of an altseason

Numerous indicators show that professional traders and retail investors remain optimistic about the rise in the price of the Bitcoin, even though it failed at the $ 20,000 mark.

The first week of December 2020 was rather quiet after Bitcoin has reached a new ATH. Investors anticipate a period of consolidation after the 77% increase observed since October 2020.

Bitcoin continues to dominate the cryptocurrency market and increase its market share, while the expected alteration has not taken place.

During this phase, several institutional investors proceeded to the acquisition of Bitcoin, among which Grayscale which would now hold a total of 547,000 BTC.

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A look at the futures markets

Most of the key futures market indicators have remained within normal value ranges, despite the recent price decline to $ 18,000.

In terms of perpetual swap contracts, the funding rate remains at a weekly threshold close to 2%. The latter indicates that traders remain optimistic without being over-indebted.

Another indicator of this bullish trend is the futures premium which, after reaching 2%, continues to stabilize around 0.9%: this value is above the minimum threshold of 0.5% even though Bitcoin failed to break through the $ 20,000 resistance.

The ratio of call and put options fluctuates between 0.63 to 0.67, after reaching a peak of 0.70 on December 2, 2020: this slight decrease is considered normal given that the number of investors seeking to protect against a fall in prices decreases.

Bulls and bears compete for daily control of the markets. Crash and Pump: It would almost look like a game if it weren’t for millions of dollars at stake for institutional investors.

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