Bitcoin Price Breaks Out, But Bulls Still Face Challenges
Bitcoin has seen a 5% increase after testing the $25,000 support level, but this doesn’t guarantee a win for bulls. In contrast to relatively stable positions in the S&P 500 index and gold, Bitcoin has experienced a 15% decline since July. Despite catalysts like MicroStrategy’s plan to acquire $750 million worth of BTC and requests for Bitcoin spot ETFs from trillion-dollar asset management firms, Bitcoin has struggled to gain momentum. However, Bitcoin derivatives suggest that bulls have confidence in the $25,000 bottom and anticipate further price gains.
The demand for leveraged BTC positions through futures contracts did not significantly impact the drop below $25,000 on Sept. 11. Additionally, the BTC futures premium remains below the 5% neutral threshold, indicating a lack of demand for leveraged long positions. The 25% delta skew metric, which assesses market sentiment, has leveled off at zero, implying equal odds for both bullish and bearish price movements.
Macroeconomic Uncertainty and BTC Confidence
With upcoming macroeconomic reports, traders may exercise caution and prefer a return to the mean, representing the trading range of $25,500 to $26,200. However, the resilience of derivatives markets during the dip below $25,000 is a positive sign for bulls. Both bears and bulls have triggers that could affect Bitcoin’s price, but predicting the timing of events like court decisions and ETF rulings is challenging. This uncertainty explains why derivatives metrics have remained resilient as both sides exercise caution.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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