To continue its sustainable long-term growth, Bitcoin quotes need to consolidate above the August maximum of $65,200. This is the conclusion reached by Bitfinex analysts in report.
They estimate that the September rally in digital gold was driven mainly by activity in derivatives trading amid weak demand in the spot market.
Open interest in Bitcoin products outpaced the price rally. A key indicator, the spot total volume delta, leveled off after the asset reached $63,500. Experts considered this a “worrying signal.” It points to widespread use of leverage, raising the possibility of a short-term correction.
In their view, the positive factor is the “formed multi-day net positive flow” into the Bitcoin ETF. The influx of liquidity into the products is capable of balancing the weak activity of buyers in the spot market, Bitfinex analysts believe.
At the time of writing, digital gold has been trading in the $63,000-64,000 range since September 19.
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Source: Cryptocurrency
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