Demand Is Rising in the Bitcoin Futures Market, Will Spot BTC Price Follow?
Bitcoin (BTC), the world’s largest cryptocurrency, is flirting with around $68,000 after facing a strong rejection from $70,000 last week. While BTC price is showing strong signs of consolidation, on-chain Bitcoin metrics reflect healthy development ahead.
Bitcoin Futures Demand Is Back
Bitcoin analyst Willy Woo has offered insight into Bitcoin’s recent market behavior, suggesting that 2.5 months of consolidation under bullish demand is beneficial for the cryptocurrency. According to Woo, this period of consolidation shows that Bitcoin price has more room to rise before reaching its peak.
Woo emphasized that net capital flows into the Bitcoin network bottomed out during the consolidation phase and increased steadily throughout May. As we have seen, inflows into spot Bitcoin ETFs have rebounded strongly over the past two weeks, with BlackRock recently outperforming Grayscale. . Daily demand from spot Bitcoin ETFs outweighs daily BTC mined many times.
In addition, Woo noted a resurgence of demand in futures markets, especially among retail traders who have demonstrated long-term demand.
Analyzing the funding rate for perpetual swaps, Woo observed a recovery in demand among retail traders, indicated by the blue shaded region, highlighting that demand is increasing without reaching dangerously high levels of fear of missing out (FOMO).
Courtesy: Willy Woo
In this consolidation phase, a large number of Bitcoins are leaving exchanges amid strong BTC whale accumulation. This could lead to a progression of the BTC supply shock, thus putting upward pressure on the Bitcoin price.
BTC Resistance and Demand Zones
Bitcoin analyst Willy Woo recently commented on the price dynamics of the cryptocurrency, highlighting the key resistance level at $73,000. According to Woo, this price point continues to pose a formidable obstacle to Bitcoin’s upward movement.
However, Woo noted that there is a significant amount of liquidation present that could trigger a short squeeze if the price manages to surpass $72,000. According to Woo’s analysis, this scenario could push Bitcoin’s price above $75,000 and ultimately break all-time highs.
According to Woo, it is only a matter of time before fundamental demand factors trigger a price squeeze in the Bitcoin market.
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Bhushan is a FinTech enthusiast and has a good ability to understand financial markets. His interest in economics and finance draws his attention to the emerging Blockchain Technology and Cryptocurrency markets. He is in a constant learning process and motivates himself by sharing the knowledge he has acquired. In her spare time, she reads thriller novels and sometimes explores her culinary skills.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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