CryptoQuant, a cryptocurrency analysis platform, revealed that investors in derivatives markets are becoming increasingly optimistic as the Fed’s interest rate decision approaches.
According to the company’s latest report, market positioning has changed significantly, especially with Bitcoin returning to the $70,000 level.
The report states that when Bitcoin rose above $70,000, a significant number of short positions were liquidated and new long positions were opened above the $73,000 level. According to the company’s analysis, this indicates that investors’ expectations for a near-term uptrend have strengthened. It is worth noting that long positions have now become dominant in the perpetual futures market.
Futures data also supports this optimism. Bitcoin funding rates have moved from negative to positive, while Ethereum funding rates remain positive. This indicates that investors are willing to pay a premium to maintain their long positions.
On the other hand, buyers also dominate in terms of trading volume. The fact that the taker buy/sell volume ratio is greater than 1 for Bitcoin and Ethereum reveals that buy transactions have been more dominant than sell transactions since mid-March. This indicates that expectations of a short-term price increase in the market are strengthening.
However, the report also highlights some risks despite bullish expectations. A significant increase in the amount of $BTC An influx into exchanges has been observed alongside the rise in the price of Bitcoin. The fact that 63% of these hourly entries, reaching 6,100 $BTCcoming from large investors, is considered a signal that historically indicates a potential increase in selling pressure.
It is also noted that Bitcoin may face strong resistance between $75,000 and $85,000 in the coming period. These levels would correspond to investors’ on-chain cost base and have acted as resistance in the past, particularly during bear market rallies. Therefore, a warning is issued that any upward movement could be limited if selling pressure increases.
*This does not constitute investment advice.