CryptoQuant: Bitcoin could have reached a local bottom

Over the past three weeks, the rate of the first cryptocurrency fell by 15% from $70,000, but after a noticeable rebound on June 25 from $60,000, signs of a possible local bottom appeared. This conclusion was reached in CryptoQuant.

From the point of view of on-chain analysis, the quotes crossed the level of the realized price of short-term holders at around $62,000.

Currently, the average profitability of this category of market participants has gone into a slight minus, which historically serves as support for local corrections during upward trends, experts explained.

In their opinion, in recent months, macroeconomic statistics from the United States have been a significant factor influencing price dynamics due to their influence on policy. Fed and, as a result, investors’ risk appetite.

Analysts noted that data on GDP and applications for unemployment benefits will be released on June 27, and a report on inflation the next day.

Derivatives Market Signals

During this period, open interest (OI) in Bitcoin futures decreased by ~$3 billion, mainly due to the liquidation of longs.

Perpetual contract financing rates have fallen to near zero, indicating greater balance between buyers and sellers, creating a healthier and less optimistic price structure, experts said.

On June 28, options on Bitcoin ($6.68 billion) and Ethereum ($3.5 billion) will expire in the amount of 40% of the total open interest for all open contracts ($23 billion).

In conversation with CoinDesk Deribit chief executive Luuk Stryers said that more than 25% of OP expires in the money. In other words, their holders will profit.

“The recent drop was caused by a sell-off by miners, some pressure from the German government and, of course, the upcoming Mt.Gox coin transfer, which is expected in early July. While short-term bearish sentiment is evident, traders expect a positive move for Bitcoin by July 12, and for Ethereum a week earlier. The launch of ETH-ETF is expected to take place in the first week of July,” the specialist commented.

Source: Cryptocurrency

You may also like