“Positioning Across Crypto Markets Doesn’t Suggest A Top, But Neither Does It Seem Ideal for Continued Rally.”, – WRITE: www.coindesk.com
Up 0.9% more than 1% in the Last 24 Hours, Bitcoin Was Trading Just Above $ 110,000 Shortly After The Close of Us Stock Markets Tuesday. The Coindesk 20 – An Index of the Top 20 Cryptocurrencies by Market Capitalization, Excluding Stablecoins, Exchange Coins and Memecoins – Has Risen 3.3
Solana
chainlink
All Gaining 5%-7%.
The Standout Performances, However, Were Put on by Uniswap
and AAVE
Whoaeed a whooping 24% and 13%, Respectively. The Move Was Prompted by Optimistic Comments on the Topic of Defi by Securities and Exchange Commission (SEC) Chair Paul Atkins on Monday.
Things have a remained Relativly Calm on the Equities Front, with Most Crypto Stocks Flat on the Day. A notable Exception Is Semler Scientific (SMLR), A FIRM THAT AIMS TO Follow Strategy’s (Mstr) PlayBook and Vacuum Up As Much Bitcoin As Posible. Shares Fell Another 10% Today, with The Stock Now Trading for Less than the Value of the Bitcoin on It Balance Sheet.
Despite The Day’s Gains, Positioning Across Crypto Markets Still Reflects a Largely Defensive Tone.
“FUNDING RATES AND Other Leverage Proxies Point Toward A Steadily Cautious Sentiment in the Market,” Vetle Lunde, Head of Research at K33 Research, Pointed Out in A Tuesday. “The Broad Risk Appetite is Remarkably Weak, Given That Btc Is Trading Close to Former All-Time Highs.”
Binance’s btc perpetual swaps posted non -funding rates on multiple days last week, with the average antualized funcing right now Bottoms Rater than Tops, Lunde Noted.
“Bitcoin does not USUALLY PEAK IN ENVIRONMENTS WITH NEGATIVE FUNDING RATES,” HE WROTE, ADDING THAT PAST Instances of Such Positioning Have More Offen Preceded Rallies.
Flows Into Levered Bitcoin Etfs Paint A Similar Picture. The Proshares 2x Bitcoin Etf (Bitx) Currently Holds Exposure Equivalent to 52.435 BTC – Well Belen ITS December 2023 Peak of 76.755 BTC – and Inflows Remain. This defensive positioning, accounting to lunde, leaaves room for a potential “Healthy Rally” in BTC to Develop.
Still, not all Market Watchers Are ConvinCed That Current Price Action Marks The Start of A Sustainable Breakout.
“Is this a True Breakout that Will Continue? In My View, Probably Not,” Said Kirill Kretov, Senior Automation Expert at Coinpanel. “More Likely, It’s Part of the Same Volatility Cycle Where We Seie A Rally Now, Followed by a Sharp Drop Trigen by a Negative AnnounComencement or.
Access to Kretov, The Current Environment Favors ExperienCed Traders Who Can Navigate Volatility-Driven Market Structure. Technically, He Sees Btc’s Next Key Support Levels at $ 105,000 and $ 100,000 – Zones that Could be tested if selling pressure Returns.
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