Bitcoin shows signs of the end of integration, but demand remains low.The price trend of BTC indicates that it is still possible to fall to $28000
- Bitcoin shows signs of the end of integration, but demand remains low.
- The price trend of BTC indicates that it is still possible to fall to $28000.
If you have been closely monitoring Bitcoin [BTC], you may have noticed the consolidation in the past four weeks. Recent research shows that Cryptocurrency is about to break through consolidation zone.
According to Woomic, Bitcoin may be moving towards the end of the integration phase. This statement is based on the growing demand for futures, although the price trend of Bitcoin has been sideways, the demand for futures has been on the rise.
This indicates that there is currently a bullish bias, especially in the derivatives sector.
Early signs of BTC integration nearing completion (FSI chart below).
Futures demand is currently driving the market, and this demand has been resisting horizontal price trends (which is bullish).
The fluctuation dynamics also indicate the possibility of larger fluctuations.
Pic. Twitter. com/WkmiQO0B17
WillyWoo (@ wonomic) July 20, 2023
The same findings suggest that the market may be about to experience another wave of volatility. But is Bitcoin's demand for derivatives strong?
Well, Bitcoin's open positions have significantly decreased in the past four weeks. Similarly, the Bitcoin financing interest rate also significantly decreased during the same period.
These findings may be due to the low volatility prevalent during the recent consolidation phase. This confirms that the demand has not yet fully existed. If bullish expectations come true, we may see a surge in demand for BTC this weekend or even in the coming week.
Since mid July, the price trend of BTC has shown some selling pressure. This indicates that, contrary to expectations, it may still face greater selling pressure. Such a result may push prices back to an upward support level.
This means we may see another unexpected drop below $28000.
So far, we have seen some weakness in the price trend of Bitcoin in the range below $30000. This result may weaken the confidence of some investors and potentially lead to more downside risks.
On the other hand, MFI indicates that liquidity is gradually returning to Bitcoin. RSI is also in the perfect position for a potential rebound at the 50% level.
Viewing Bitcoin metrics can give you a better understanding of the status of Bitcoin. Ultimately, the fate of Bitcoin lies in the hands of addresses with large balances: whales. Since July 13th, addresses holding over 1000BTC have been reducing their balance.
Despite a slight outflow of funds, the same indicator indicates that whale holdings are still quite high, especially compared to the lowest level in June.
This once again indicates that the current selling pressure is low. Therefore, the final result may still be a difficult to predict outcome. However, due to institutional demand, this result may be biased towards bullishness.
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