Given that it is Saturday, the price of Bitcoin is rising to $34,500 this weekend, although this is on the back of even smaller volume than the decreasing trend.
Bloomberg is currently examining a crucial trendline that previously served as a support for the Bitcoin price but is now proving difficult to break above. They believe that unless prices can regain the barrier, this will result in a gloomy view.
The trendline, which began with the March 2020 drop, served as support as recently as May, when the cryptocurrency plunged to under $30,000. However, according to eGirl Capital trader CL,
Meanwhile, despite the fact that the most popular cryptocurrency is still down roughly 48% from its all-time high in April, it is still up 19%, outperforming gold, the stock market, and the US dollar.
The sideways movement of Bitcoin is occurring at a time when the US dollar is displaying strength, remaining above the 92 mark. As a result, US net shorts have declined for the second week in a row to $10.44 billion, the lowest level since April.
In the meantime, indicators in the futures market have rebounded from recent lows, but a proper sentiment reversal remains elusive.
Bitcoin net shorts declined to 1,345 contracts in the week ending June 29 from 1,528 the week before.
When it comes to premiums on major futures contracts, not much has changed, with those expiring at the end of September trading at a few hundred dollars higher than those due in December. In addition, the increase in OI is minor. Trader CL said.
Hedge funds are cancelling positions and returning to cash as the basis trade, or the difference between spot and futures prices, falls. Nickel Digital Asset Management, a $200 million hedge fund run by Goldman Sachs and JPMorgan graduates, is one example.
BTC long/short ratio shows purchasing interest after it recovered last Friday and has held up rather well this week despite the current price drop, according to OKEx futures data.
The BTC margin lending ratio, which surged to 4.39 this week from 1.53 last Friday and is now at 2.82, also indicates that retail has resumed buying.