The weekly Bitcoin price candle shows an increase of over 16% so far. The last time we saw such a weekly increase was in March, after the fall of Silicon Valley Bank, and the first week of this year. The price thus tested the $30,000 barrier and successfully broke through it. So can we consider this boundary as a new support?
Bitcoin ETF filings with the Securities and Exchange Commission were likely the biggest driver of price growth this week. So far, no one has commented on them, and any approval could come at the beginning of next year at the earliest. This would indicate the possibility of an artificially driven price driven by the FOMO effect. It would thus indicate a possible decline after investors have sobered up.
But professional traders don’t think so. They assume that there is an accumulation of tokens before the market is opened to institutional investors.
Market sentiment remains neutral
Another indicator may be the current sentiment in the cryptocurrency derivatives market. These are often used by professional traders. Looking at leveraged long positions, we see increasing demand. The premium on futures contracts increased from 3.2% to 4.3% in a week. Although it has increased, it is still below the neutral limit of 5%.
Also, the 30-day Bitcoin options show a reversal of the skewness metric (25% delta skew). It was still in the fear zone on June 16, and during the week it went as low as negative 8%, which would normally be considered a neutral or slightly greedy sentiment.
Conclusion
Overall, it can be said that the sentiment is neutral in the market of professional traders. And that’s good for the price of Bitcoin. It suggests that investors do not expect the price to fall soon and will rather wait. This would mean that the band around $30,000 could now serve as a fairly strong support where we will be moving for some time. But that may well be changed by, for example, the first negative news regarding the lawsuit between Binance.US and the Securities and Exchange Commission (SEC).
2023-06-24 08:00:00
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