June 24, 2021

Bitcoin Will Likely Reclaim $42,000, Asserts OKEx Investment Analyst

2 min read

A current downside correction in the Bitcoin market has done little to offset its long-term bullish predisposition, indicates Robbie Liu.

The OKEx financial investment analyst noted a flurry of trading information readings that showed the cryptocurrency facing restricted disadvantage dangers. He noted that the recently’s “& ldquo; Musk rally & rdquo; of more than$6,000 helped the bullish belief recuperate, including that closing above the run-up’s peak might trigger BTC/USD to challenge $40,000—– or perhaps recover $42,000.

“& ldquo; The long/short ratio had little ups and downs during the week, hovering in a series of 1.07 to 1.53, and although prices kept moving higher, the ratio did not return to last Friday’s high of 1.80,” & rdquo; explained Mr. Liu, including that the ratio now is running near 1.20.

In retrospection, the long/short ratio compares the overall number of users opening long positions versus those opening brief positions. When the ratio is low, it shows that more traders hold short positions, i.e., wagering in favor of a rate fall.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin long/short ratio. Source: OKEx Bitcoin long/short ratio. Source: OKEx At 1.20, the long/short ratio is sufficiently bullish, hinting that Bitcoin might see further cost gains in the coming sessions. Bitcoin Basis-Difference More readings point Bitcoin in the northward direction. For example, the quarterly futures premium, which measures the basis-difference in between Bitcoin’s futures agreement rates and area rates, is currently 4.8 percent or $1,800. It shows that the market is gaining back confidence in an upside relocation.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Bitcoin quarterly futures premium. Source: OKEx

“Bitcoin quarterly futures premium. “Source: OKEx & ldquo; Moreover, & rdquo; included. Mr. Liu, & ldquo; the funding rate for perpetual swaps, which follow the very same pattern as the quarterly futures premium, continued to move higher during the week. It reached a peak of 0.19% on Thursday early morning before the rate falling back for a short-term correction.”

“& rdquo; & ldquo; The current financing rate has actually been running around 0.06%, which is within the typical range and leaves room for Bitcoin to continue its upward motion,” & rdquo; he

included. The week also saw Bitcoin’s open interest and volume spiking in tandem to $2.1 billion after remaining lower in the previous session. The jump happened the exact same time when Bitcoin confirmed a double bottom circumstance at the $34,500 level.

“& ldquo; This price level will be an essential assistance in the future,” & rdquo; added. Mr. Liu.