The passage of Bitcoin over $ 32,000 and its recent jump has made traders feel more positive than before. However, some analysts warn of the heavy resistance to this digital currency.
to the Report The Coin Telegraph, the jump in the price of Bitcoin and the crossing of $ 32,000, revived hopes for a further rise of this digital currency. However, analysts say more confirmations are needed to confirm the reversal and the resumption of the uptrend.
Uptrend of CME futures contracts
According to Delphi Digital, on Wednesday we saw the formation of a strong turning point in the market, which showed that traders are rapidly buying contracts that they consider “cheap” for Bitcoin. Since the price of futures contracts is higher than the price of bitcoin, this can be considered an upward signal.
As shown in the chart above, the volume of CME futures rose from $ 1.25 billion on Monday to $ 2.5 billion on Tuesday. It can be said that institutional investors, after a long period of buying sales contracts (shorts), have now turned to purchase contracts.
However, leverage mutual funds continue to buy sell contracts; Because they use CME futures contracts as a risk hedging tool. Delphi Digital says it is possible that they too have closed some of their positions.
Delphi Digital wrote in its report:
In general, the rate of new CME futures is somewhat bullish. It should not be forgotten that Bitcoin experienced a small jump a few hours after the end of the New York trading to stay within its previous fluctuations. As we said before, yesterday [سهشنبه] And before the futures contract reached a significant milestone, we saw negative levels. All the data show that after Bitcoin went out of its months of volatility, everyone went to buy futures.
Road full of bitcoin barriers
The revival of Bitcoin above $ 32,000 has brought a wave of optimism to many traders, but the path ahead for this digital currency is fraught with obstacles and resistance.
Rekt Capital, a leading digital analyst on Twitter, believes that Bitcoin’s previous support of $ 35,000 and $ 37,000 is likely to act as resistance soon.
Bitcoin currently fluctuates in the $ 33,700 range, up about 5 percent from the previous 24 hours.
Increasing the entrance of exchange offices on the floor
A Twitter analyst with the username “IzzyEibani” referred to the increase in inflows to exchanges as an upward signal.
Taking a closer look at this chart, we can say that on August 1, 2017, November 30, 2018 and March 12, 2020, the inflow of funds to the exchange office was accompanied by such a leap, and each time, the floor market recorded its trend.
If the market behaves the same as before, we can say that $ 29,500 will be the bottom of the current trend and we will have to wait for the market to peak again.