The world’s largest cryptocurrency Bitcoin (BTC) has been flirting around $68,000 after facing strong rejection at $70,000 last week. While the BTC price has been showing strong signs of consolidation, the on-chain Bitcoin metrics reflect healthy development ahead.
Bitcoin Futures Demand Bounces Back
Bitcoin analyst Willy Woo has offered insights into Bitcoin’s recent market behavior, suggesting that the 2.5 months of consolidation under bullish demand has been beneficial for the cryptocurrency. According to Woo, this period of consolidation indicates that the price of Bitcoin has more room to rise before reaching a peak.
Woo highlighted that net capital flows into the Bitcoin network hit bottom during the consolidation phase and have been steadily increasing throughout May. As we have seen, the inflows into spot Bitcoin ETFs have bounced back strong over the past two weeks, with BlackRock overtaking Grayscale recently. The daily demand from spot Bitcoin ETFs outweighs the daily BTC mined, by manifold times.
Additionally, Woo noted a resurgence in demand in futures markets, particularly among retail traders showing long demand.
Analyzing the funding rate for perpetual swaps, Woo observed a rebound in demand among retail traders, depicted by the blue-shaded region, while emphasizing that this demand is rising without reaching dangerously high levels of fear of missing out (FOMO).
During this consolidation phase, a large number of Bitcoins have been moving off exchanges amid strong BTC whale accumulation. This could lead to a BTC supply shock going ahead thereby putting upward pressure on the Bitcoin price going ahead.
BTC Resistance and Demand Zones
Bitcoin analyst Willy Woo recently commented on the cryptocurrency’s price dynamics, highlighting the significant resistance level at $73,000. According to Woo, this price point continues to pose a formidable obstacle to Bitcoin’s upward movement.
However, Woo pointed out that if the price manages to surpass $72,000, there exists a substantial amount of liquidations that could potentially trigger a short squeeze. This scenario, as per Woo’s analysis, could propel Bitcoin’s price to soar past $75,000 and ultimately break its all-time highs.
In Woo’s opinion, it’s only a matter of time before fundamental demand factors trigger a price squeeze in the Bitcoin market.
The post Bitcoin Futures Market Demand Soars, Will Spot BTC Price Follow? appeared first on CoinGape.
Earn more PRC tokens by sharing this post. Copy and paste the URL below and share to friends, when they click and visit Parrot Coin website you earn: https://parrotcoin.net0
PRC Comment Policy
Your comments MUST BE constructive with vivid and clear suggestion relating to the post.
Your comments MUST NOT be less than 5 words.
Do NOT in any way copy/duplicate or transmit another members comment and paste to earn. Members who indulge themselves copying and duplicating comments, their earnings would be wiped out totally as a warning and Account deactivated if the user continue the act.
Parrot Coin does not pay for exclamatory comments Such as hahaha, nice one, wow, congrats, lmao, lol, etc are strictly forbidden and disallowed. Kindly adhere to this rule.
Constructive REPLY to comments is allowed