Crypto markets have recently shown strong signs of recovery as the values of derivatives contracts continue to rise speculating on the decline in the price of Bitcoin (Bitcoin-BTC) and other prominent altcoins, suggesting the possibility of an “imminent squeeze wave of bearish trades.”
According to a K33 report, the weekly average value of aggregated derivatives contracts held annually reached its lowest level since March March, 2023 on Tuesday, indicating that there are continued concerns about the possibility of further declines.
In a recent report, K33 analysts Vetle Lunde and David Zimmerman noted that the coincidence of the rise in the total value of Bitcoin derivatives contracts and the continued depreciation of the total value of speculative contracts could lead to an imminent squeeze wave of speculative downward trades.
If this happens, bears may find themselves forced to close their positions and buy at higher prices to avoid further losses, which could accelerate BTC’s rises.
At the same time, other markets achieved remarkable achievements, with stock indices continuing to hit new highs and gold prices continuing to reach record highs, and the US Dollar Strength Index (DXY) and the 10-year Treasury Yield Rate touched their lowest levels recorded annually, giving expectations that the BTC is about to rise in a significant momentum.
Read also:Bitcoin bulls pay for it above $60,000 so can it go back to $70,000?
Analysts’ views on Bitcoin’s prospects are becoming more positive
Additional investments to Bitcoin’s spot BTC ETFs and a recovery in the Fear and Greed Index added further to Bitcoin’s recovery; these products saw a net investment of $88 million last Tuesday, led by BlackRock’s IBIT fund, which alone added $55.4 million.
Peter Brandt, an expert trader, also highlighted the movements of Bitcoin’s price according to his chart, and Brandt explained that it recently formed a technical triangle pattern that complements the trend, indicating the possibility of its price rising and retesting its all-time high of $73,835, but advises the need to be cautious given the severity of recent volatility.
Bitcoin Price Movements, Source: TradingView As for technical indicators, the stability of the 50-day Exponential Moving Average (EMA-50) line at $59,616 suggests that the downward path can continue, a price break to $60,000 and a consolidation below may indicate growing selling pressure, while its consolidation above could give the potential rally a further impetus.
Conclusion: The outlook remains bearish as long as the price remains below $60,000, while holding on to this level and holding above the upward forecast is likely to hold on.
The post Bitcoin’s price is on the cusp of rising due to an impending wave of speculative downward trades, according to expert analyst Peter Brandt appeared first on Cryptonews Arabic.
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