Since peaking at $ 12,500 late last month, the leading cryptocurrency has traded under downtrend. The coin is holding $ 2,000 below these highs, despite the fact that it has already rebounded from local lows by about $ 700.
Some market data suggest thatin the near future, Bitcoin (BTC) will continue its ascent. Let's get acquainted with the opinion of a cryptanalyst under the nickname Byzantine General:
- After reaching an extremely high levelgreed in August, bitcoin's fear and greed index fell to the level of "fear". The index is calculated based on a variety of data sets, including market sentiment, volume, social media trends, and more. Analysts think this works as a kind of counter-indicator, reaching extreme greed levels as the top approaches, and vice versa.
- Bitcoin is currently trading at a discountrelative to the exchange rate, which means that the price of bitcoin futures in the market is lower than the actual spot price. As per the chart below, periods of backwardation are often seen before a cryptocurrency takes off.
- Funding rates for futuresBTC markets are in negative or neutral levels. This is similar to the last point that whenever they are in the red or neutral zone, a rally should be expected.
- There is a group of Bitcoin short liquidation levels above the current BTC price that the market is likely to gravitate towards in the short to medium term.
I'm going to show you 4 pieces of #Bitcoin data and then you tell whether $ BTC is bullish or bearish.
- Byzantine General (@ByzGeneral) September 22, 2020
The network data is consistent with the bullish sentiment shared by the trader:
“Another impulse to transfer coins from hand to handis completed, the next directional movement in the coming weeks is likely to be upward. It is very unlikely that we will see any catastrophic drop in prices. "- commented well-known analyst Willie Wu.
Other on-net trends, such as the strength of bitcoin miners as measured by hashrate and network complexity, are also shaping the macro-bullish backdrop for cryptocurrencies.
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