When the data called Derivatives data is examined, it is seen that Bitcoin is moving with the target of $ 29000 in an ascending channel.
Derivatives data shows that there is a way to go up to $ 29,000, but inflation and unemployment data seem to continue to be very important for determining BTC price rallies.
Bitcoin (BTC) price continues to battle at the $24,000 resistance and the price was rejected again on August 10. However, the rejection was not enough to push the price out of the 52-day ascending channel. The channel has a support of $22,500 and this bullish formation indicates that the BTC price will eventually reach the $29,000 level by early October.
Bitcoin derivatives data shows a lack of interest in long positions (bulls) opened in leveraged trading.
On August 8, chip and video graphics card maker Nvidia Corp (NVDA) announced that Q2 sales were down 19% from the previous quarter. Additionally, the U.S. Senate passed a bill on August 6 that could negatively impact company earnings. The provision will impose a 1% tax on share repurchases of publicly traded companies, despite putting $430 billion in circulation to fund climate, health and tax.
The high correlation of traditional assets with cryptocurrencies remains a major concern for some investors. Because the US Federal Reserve monitors employment data very closely, investors should not get ahead of themselves even if inflationary pressure decreases.
The latest data released showed an unemployment level of 3.5%, typical of hyperactive markets, and it looks like it will force the monetary authority to continue raising interest rates and cancel incentive borrowing programs.
Investors may choose to reduce their risk positions until it is clearly felt that the tight monetary policies implemented by the US Federal Reserve are close to easing. This is exactly why crypto traders follow macroeconomic figures so closely.
Right now, Bitcoin doesn’t seem to have the strength to break the $24,000 resistance, but traders should examine derivative data to gauge the sentiment of professional investors.
Derivatives Data Neutral to Drop
The Bitcoin futures annual premium is an indicator that measures the difference between long-term futures contracts and current spot market levels. The indicator runs between 4% and 8% to compensate for traders locking money until the contract expires. Therefore, levels below 2% indicate extreme bearishness, while levels above 10% indicate extreme optimism.
The chart above shows that this metric dropped below 4% on June 1, reflecting the lack of demand by traders for leveraged long (bullish) positions. However, the current 2% reading does not seem particularly alarming, given that BTC is down 51% year over year.
Given Bitcoin’s current ascending channel pattern, Bitcoin investors probably shouldn’t worry too much about the lack of buying demand, according to futures market data.
Sure, there is healthy skepticism reflected in derivative metrics, but the path to a $29,000 BTC price may remain clear as long as inflation and employment statistics are under control.
The information contained in this article does not constitute investment advice. Investors should know that cryptocurrencies carry risks due to their high volatility and should perform their transactions in line with their own research.
