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In spite of near-term caution, Bitcoin metrics demand rises

Rare signs from derivatives markets echo the commencement of previous Bitcoin price runs-ups, but Decentrader predicts a bearish retest of support first.

Bitcoin (BTC) has a “possibility” of regaining lost ground this month, but a retest of $40,000 could put bulls to the test first.

Decentrader, a trading platform, expressed cautious optimism about BTC price action in its latest market update on February 11.

 

Derivatives become mutually beneficial.

BTC/USD has since plummeted back into the range that has defined it this week, after surging above $45,500 on the back of US economic data.

Even though on-chain measurements are putting in rare bull signals, Decentrader is likely to have a low-timeframe fall.

The report noted, “Bitcoin is at a relatively neutral level with distinct zones of resistance and support above and below.”

Sentiment, which is now in “neutral” area rather than “fear,” is helping bulls, as are optimistic indicators from derivatives markets, such as cheap financing rates and a negative long/short ratio.

“We’ve now had a continuous period of negative financing rates, seen OI [open interest] decline over time, and, most critically, seen the Long/Shorts ratio become negative,” Decentrader added.

BTC/USD has rallied three times since late 2020, according to an accompanying chart, amid such unusual circumstances.

 

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On the short-term prognosis, “nothing has changed.”

In terms of the prognosis, if bulls aren’t too frightened by the $40,000 level being broken, a drop might result in a rebound at $39,000.

“To the upside, there are resistance levels at $47,950 and $52,660 on either side of the significant point of breakdown from the summer fall,” the newsletter continued.

However, for the time being, it’s a case of “wait and see.”

Crypto Ed, a well-known trader and expert, contended in his most recent social media update that “nothing changed.”

“I’m anticipating a surge towards $40,000.” A bounce to 48k is predicted in a bullish situation. When we break 40k, bearishness enters the picture.”

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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