Is Bitcoin’s Bull Market Just Beginning? Leveraged Bets Suggest Big Moves Are Coming
31 Octobre 2024 - 2:30AM
NEWSBTC
The recent surge in Bitcoin price appears to align with a shift in
investor behavior, according to a CryptoQuant analyst known as
‘crypto sunmoon.’ In a post on the CryptoQuant QuickTake platform,
the analyst observed that the current bull market is driven by
leveraged bets, particularly in derivatives markets. This trend is
noteworthy as it contrasts with past market cycles where increased
deposits often accompanied BTC bull runs to spot exchanges. Related
Reading: Bitcoin Volatility To Peak By November 8 As ‘Trump Trade’
Intensifies – Report Leveraged Bets’ Role in Bitcoin Price Growth
Elaborating further on leverage bets involves using borrowed funds
to multiply the size of an investment. For example, with 2x
leverage, a trader can open a position twice as large as their
capital. In Bitcoin futures trading, this approach can be
profitable during upward price movements but also comes with risks.
If the market shifts against their position, traders can face
significant losses called liquidation. The analyst notes that the
inflow of Bitcoin into derivatives exchanges signals increased
confidence among investors, suggesting a belief in further price
gains. This confidence can create a feedback loop, where rising
prices encourage additional leveraged bets, further fueling the
bull market. Bitcoin bull market begins with leveraged bets “The
bull market will continue as #bitcoin continues to be deposited
into futures exchanges for leveraged bets using derivatives, rather
than into spot exchanges for selling.” – By @t0_god Link
👇https://t.co/1egL7L2YoO pic.twitter.com/uuQPEiSWtb —
CryptoQuant.com (@cryptoquant_com) October 30, 2024 BTC Price
Performance And Outlook With Bitcoin’s price showing an 8.2%
increase over the past week, currently trading at $71,804, the role
of leverage becomes increasingly relevant. Notably, BTC saw a
slight retracement from its recent 24-hour high of $73,562 yet
continues to maintain upward momentum. This steady price growth and
leveraged inflows signal broader investor optimism toward Bitcoin’s
future price potential. According to the analyst, as long as
Bitcoin continues to flow into futures rather than spot exchanges,
the bullish sentiment will likely remain strong. Notably, leveraged
bets happen to be just one of the several metrics of Bitcoin,
suggesting a potential continuity of the ongoing increase in price.
So far, the Stablecoin Supply Ratio Oscillator (SSRO) has seen low
levels not seen since 2022. The decrease of this metric into lower
levels means more stablecoins are being converted to BTC, therefore
suggesting increasing demand for the asset. Related Reading:
Dormant Bitcoin Wallet From 2012 Awakens, Moving Millions—BTC Price
To Dip? Meanwhile, the technical outlook isn’t left in one of the
several metrics indicating more rally for BTC’s price. Earlier
today, the renowned crypto analyst Ali highlighted that
historically, BTC has increased to 1.618 and 2.272 Fibonacci
retracement levels. Should the asset follow the same pattern this
time, Ali predicts BTC will surge to a price between $174,000 and
$462,000. In past bull cycles, #Bitcoin has peaked between the
1.618 and 2.272 Fibonacci retracement levels. Following a similar
pattern, the next $BTC top could land between $174,000 and
$462,000! pic.twitter.com/KUq51Tt57z — Ali (@ali_charts) October
30, 2024 Featured image created with DALL-E, Chart from TradingView
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