Main takeout:
Heavy liquidation played a role in Bitcoin returning to $ 95,000.
The correlation with Bitcoin’s stocks emphasizes the increase in independence as an asset.
The optimistic institutional investor positioning contrasts with the retail trader’s attention, supporting more than $ 100,000 rally.
Bitcoin (BTC) has reached 11%between April 20 and April 26, with elasticity near $ 94,000, nearly a two -month high. The relief rally followed a signal of the Trump administration’s easing of import tariffs and strong corporate income reports.
Investors’ trust in Bitcoin has risen even further with a record of $ 3.1 billion in net influx to discover Bitcoin Exchange Transactions (ETF) for five days. However, the main BTC derivatives indicators showed signs of weak momentum, questioning whether the $ 100,000 goal is still realistic.
Perpetual Bitcoin Future Contract is preferred by retail traders because the price is closely tracked in the field market. Positive financing ratios mean that the buyer pays to maintain its position, so the reversal of this fee is generally related to the weakness.
The rapid negative funding rate recorded on April 26 is very rare in the bull market. The metrics have been volatile since April 14, but the seller has caught a guard as Bitcoin’s price rises to more than $ 94,000. Since April 21, more than $ 450 million has been cleared in the short position of BTC.
Some of the new trust and price strengths of Bitcoin can be attributed to 7.1% of S & P 500. Despite this optimism, however, US President Donald Trump said on April 25 that negotiations depend on yielding China, so merchants will question the sustainability of recent profits.
Companies are reporting one -quarter income before the current trade war increases, so the factors leading to the stock market and bitcoin are different. In fact, the price of Bitcoin is no longer closely related to the S & P 500.
Currently, the 30 -day correlation between S & P 500 and Bitcoin is 29%, much lower than 60%, which can be seen from March to mid -April. This low correlation does not mean complete separation, but investor feelings are still influenced by macroeconomic factors, which shows that Bitcoin is not simply a representative of technology stocks.
The status of Bitcoin as an independent asset has been strengthened.
It was also important to be an independent asset class of Bitcoin that it could not maintain the optimistic propulsion of Gold after reaching a record high of $ 3,500 on April 22. Some merchants questioned the story of “digital gold”, but the longer the BTC, the more more than $ 90,000, the more convinced investors could be more confident and potentially gained more profit.
Increasing demand for weak leverage in permanent BTC futures does not match the feelings of professional traders. Monthly Bitcoin Futures Agreement avoids the rate of financing, so traders know in advance.
On April 26, the Bitcoin Futures Premium (Basic Ratio) rose to the highest level in seven weeks, showing more interest in the position of the strong position. 6.5% Roymetric remains within 5% neutral 5% to 10%, but is moving away from the weak area.
The connection between the permanent future leverage demand and monthly BTC contracts is not uncommon. Even if the retail trader is careful, the significant accumulation of the institution may be enough to push the price of Bitcoin to more than $ 100,000 in the near future.
This article is for general information purposes and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.