Here are 3 factors that suggest that Bitcoin is poised for a serious push higher
Bitcoin’s price action has been showing mixed signals to investors as its price has been trapped within a wide trading range between $ 10,200 and $ 11,200 as buyers and sellers battle for control of its short-term outlook. .
The cryptocurrency’s inability to post a sustainable rally indicates how strong sellers are right now, leading to a growing sense of fear among investors.
That being said, one analyst is pointing out that this is the main reason he is still bullish on BTC, using investor sentiment as a counter-indicator.
That same trader also points to consistently neutral or negative funding as another factor working in favor of the benchmark cryptocurrency, as well as a premium for spot Bitcoin over BTC derivatives.
Investors become fearful as Bitcoin continues to consolidate
Bitcoin’s consolidation trend has made it incredibly unclear where it may trend in the days, weeks, and months to come.
In recent weeks, the benchmark digital asset has traded between $ 10,200 and $ 11,200.
Which of these levels breaks firmly above or below first should give investors some serious insight into the near-term outlook for the entire market.
Due to the uncertainty surrounding the next BTC trend, investors have become increasingly fearful. This has caused the “fear and greed index” to sit firmly within the fear zone.
One analyst thinks this is an uptrend:
“Then we have the index of fear and greed that speaks for itself. After the 12k resistance we fell hard and now we are constantly trapped in the fear zone, ”he explained.
These other factors could help drive BTC higher
The same trader also pointed to the consistently negative or neutral funding of Bitcoin as an uptrend indicating that there is significant room for improvement.
“First of all there is financing. One of the best indicators to measure market sentiment. After the 12k drop, it has been consistently negative or benchmark at best. “
He also explained that the “contango index” of the cryptocurrency shows that there is a premium for spot Bitcoin over derivative BTC, which is an uptrend.
“We have the contango index. This shows the difference between the price of SPOT exchanges and derivatives exchanges. When SPOT has higher prices, the indicator goes down, to the green zone. A constant premium for SPOT exchanges is considered bullish. “
The confluence of all these factors indicates that a major upside momentum is imminent for Bitcoin.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.