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Demand for Bitcoin Futures Increases, Will BTC Price Rise?
Today, Bitcoin fell to the $67,000-68,000 price range after a strong rejection at $70,000. Although BTC is in a consolidation phase, on-chain metrics suggest a bullish phase ahead. Crypto analyst Willy Woo shares insights into Bitcoin’s recent price action.
Analyst Willy Woo analyzes BTC’s performance metrics
Willy Woo He says BTC has spent two and a half months of consolidation driven by bullish investor demand. He believes this period of consolidation is beneficial for BTC. According to Woo’s analysis, the consolidation phase gives BTC more room to grow before reaching its peak value in the current market cycle.
According to Woo, net capital inflows to the Bitcoin network bottomed out during the consolidation phase. However, inflows increased significantly in May due to growing investor interest in spot Bitcoin ETFs.
The daily demand for Spot ETF on BTC it is now higher than the daily mined BTC by a wide margin. And BlackRock’s IBIT ETF outperformed Grayscale’s GBTC.
Furthermore, the analyst highlighted an increase in demand for the Bitcoin futures markets. For context, futures are binding contracts to trade an asset at a fixed price on a particular date.
Woo says the increase in demand for futures has been especially evident among retail traders. Furthermore, the funding rate for perpetual swaps also increased, confirming the interest of retail traders.
Meanwhile, a large amount of Bitcoin has been moved from different exchanges due to the accumulation of whales in this consolidation phase.
In his analyses of Bitcoin’s performance, Woo used the Bitcoin Macro Oscillator (BMO) to showcase its performance. He noted that BMO has moved one level lower and has two or three levels to rise before reaching the top of the macro market. Therefore, he believes that Bitcoin has not yet reached its maximum price in the current cycle and will rise soon.
Bitcoin supply and demand zones critical for next price movement
Bitcoin is trading below $68,000, with heavy bear pressure at critical resistance zones. Second CourtThe $73,000 price level represents a significant resistance point to Bitcoin’s uptrend.
Woo believes there will be significant liquidations for sellers if Bitcoin manages to break above $72,000. He declared that these liquidations could take Bitcoin above $75,000 and ultimately set a new all-time high.
What future for Bitcoin?
After the decline on May 23, BTC remained below the $69,560 resistance level. It found support at the $67,194 price level. However, selling pressure could push it further lower.
Meanwhile, the RSI indicator drops from the neutral zone to 53.60. This implies that the sellers are in control and will likely force the BTC price further down.
The MACD indicator is falling below its signal line, confirming the bearish sentiment for Bitcoin. Therefore, Bitcoin has entered a bearish phase, which will likely last in the short term before resuming its rally. Based on its current performance, it will likely fall to the $67,194 support level in the coming days.
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