Analysis firm IntoTheBlock pointed to a development in the Bitcoin (BTC) futures market. The firm says the data shows a figure that previously marked market bottoms. On the other hand, analyst Tone Vays explained when $23,000 will be seen in BTC. Here are the details…
Tone Vays points to some key highs for Bitcoin
A veteran crypto trader says that if Bitcoin (BTC) hits certain price targets, it can almost guarantee the start of a new bull market. Tone Vays describes a scenario showing how Bitcoin bulls can effectively end the year-long bear market. According to Vays, BTC bulls should have a very good chance to ignite the new bull market. For this, the biggest crypto should raise its price to its highest level in November. Vays uses the following expressions:
I want to see a move just below $23,000. If we are rejected, we need to hold $19,000 for the rejection and then we have to go back and start the challenge to $23,000. That tells me the 95 percent to 98 percent bull market has started. Until that happens, I won’t be sure that the bull market has started.
Will there be another sale?
As we reported on cryptokoin.com, the crypto trader who accurately described the collapse of BTC in 2018 is also open to the idea that Bitcoin may witness another selling event. However, traders underline that after capitulating, BTC will likely start a new bull rally immediately. Vays uses the following expressions:
Another scenario is if we go down to $11,000 or below. I believe the bull market will start right after that because I don’t believe Bitcoin can drop any further. So these are my two final scenarios.
Either way, Vays expects Bitcoin to hit the $23,000 price level late this year or early 2023.
Interesting Bitcoin data from IntoTheBlock
On the other hand, IntoTheBlock drew attention to the difference between Bitcoin and the value of BTC futures contracts in the spot markets. The firm says this marks the sharp decline as BTC is priced significantly lower. According to the analyst firm, the decline points to high selling pressure for Bitcoin over the past two weeks.
IntoTheBlock states that while the futures markets are in decline, funding rates for Bitcoin are currently in highly negative territory. According to experts, this reveals that traders are heavily shorting BTC. Another possibility is that investors are betting that the value of the biggest crypto will continue to decline.
Has it bottomed out?
Traders tend to consider extremely negative funding rates. Because this situation is thought to prepare the market for a short squeeze. A “short squeeze” happens when market participants who borrow an asset at a certain price in hopes of selling it at a lower price to pocket the difference are forced to buy back assets while moving against trading trends. The analyst firm explains the situation as follows:
Times when futures contracts are retrograde, such as in March 2020 and May 2021, tend to align with market bottoms. A similar trend can be observed in highly negative funding rates. Is Bitcoin bottoming out?
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