{"id":24525,"date":"2022-04-20T06:38:22","date_gmt":"2022-04-20T10:38:22","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=24525"},"modified":"2022-04-20T06:45:40","modified_gmt":"2022-04-20T10:45:40","slug":"futures-market-displays-why-bitcoins-btc-recovery-may-only-be-temporary","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/futures-market-displays-why-bitcoins-btc-recovery-may-only-be-temporary\/","title":{"rendered":"Futures Market Displays Why Bitcoin’s (BTC) Recovery May Only Be Temporary"},"content":{"rendered":"\n
This week, Bitcoin (BTC)<\/a> recovered from a one-month low, reclaiming a key support level as investor sentiment strengthened. However, the token's forward trades displayed little bullish sentiment, implying that it may be headed for further losses.<\/h5>\n\n\n\n
\"Futures
Bitcoin's (BTC) Recovery May Only Be Temporary<\/strong><\/figcaption><\/figure><\/div>\n\n\n\n

BTC has risen about 7% since its April lows, and was last trading around $41,000. Big traders amassing more BTC at lower prices accounted for the majority of the token's gains.<\/p>\n\n\n\n

Large liquidations in the futures market, particularly in long positions, were driven by the token's wild swings. However, the mass liquidations highlighted another aspect of BTC positioning-a large number of traders looked to be avoiding the world's largest cryptocurrency.<\/p>\n\n\n\n

BTC funding rates are dwindling<\/strong><\/h3>\n\n\n\n

Perpetual futures markets showed little bullish demand for BTC positioning, according to data from blockchain analytics firm Kaiko. The analytics firm observed in a tweet\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> that funding rates for both Bitcoin (BTC) and Ethereum (ETH) had been declining since late-2021.<\/p>\n\n\n\n

The firm took an average of funding rates from five derivatives- Binance, Bitmex, Bybit, Derbit, and FTX. The funding rates for both BTC and ETH fell to a two-month low.<\/p>\n\n\n\n

Coinglass data<\/use><\/svg><\/span><\/a> also shows that most token funding rates are largely negative. A negative funding rate indicates that traders broadly expect the crypto market to decline.<\/p>\n\n\n\n

\"Futures<\/figure><\/div>\n\n\n\n

CME Group futures <\/use><\/svg><\/span><\/a>also predict a drop in the token over the next few months<\/p>\n\n\n\n

Is Bitcoin in for more losses?<\/strong><\/h3>\n\n\n\n

BTC's latest recovery, according to technical indicators, may only be temporary. The token is likely to fall further after a brief bounce.<\/p>\n\n\n\n

A recent study showed BTC is potentially forming an impulsive wave pattern and could rise as high as $45,000 shortly. However, the token is projected to fall much below $40,000<\/a> towards the end of the pattern. A drop in BTC is expected to ripple across the crypto market.<\/p>\n\n\n\n

Concerns over increasing inflation and a hawkish Federal Reserve dragged the world's largest cryptocurrency down from  2022 highs earlier this month.<\/p>\n","protected":false},"excerpt":{"rendered":"

This week, Bitcoin (BTC) recovered from a one-month low, reclaiming a key support level as investor sentiment strengthened. However, the token’s forward trades displayed little bullish sentiment, implying that it may be headed for further losses. BTC has risen about 7% since its April lows, and was last trading around $41,000. Big traders amassing more […]<\/p>\n","protected":false},"author":32,"featured_media":22699,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21,83],"tags":[152,149,1859],"class_list":["post-24525","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-bitcoin-news","tag-bitcoin","tag-btc","tag-futures"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/03\/bitcoin-major-breakout-2.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/24525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=24525"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/24525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/22699"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=24525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=24525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=24525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}