Bitcoin (BTC) continued its upward trend last night, briefly climbing above $79,300. However, this was short-lived, and Bitcoin failed in its attempt to break the critical $80,000 resistance level. The BTC price retreated to around $77,800.
While it is stated that the rise could continue if Bitcoin surpasses $80,000, Julio Moreno, head of research at CryptoQuant, evaluated the recent upward movement in Bitcoin.
Accordingly, Moreno concluded that the rise in Bitcoin was driven by the futures market.
In his latest analysis, a CryptoQuant analyst stated that the recent rise in Bitcoin price was driven entirely by demand in the perpetual futures market rather than spot demand. The analyst added that spot demand has not yet recovered.
At this point, the analyst issued a warning. Because the recent rise in Bitcoin is being driven more by the derivatives market than spot demand, there is a risk of a correction in the coming days.
“The recent rise in Bitcoin prices is entirely driven by demand in the perpetual futures market. Demand in the spot market is still showing a downward trend.”
Moreno noted that this situation is similar to when Bitcoin reached its peak of $98,000 in January. According to Moreno, at that time, strong demand in the futures market triggered the price increase, but a correction followed because the rise wasn’t supported by spot demand.
Moreno concluded by warning that if short-term investors also take profits during a period of weak spot demand, it could put downward pressure on prices.
“Currently, there is a possibility of a price correction if investors engage in profit-taking. Downward pressure could intensify, especially if the contraction in spot demand continues.”
*This is not investment advice.
