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Two Indicators That Determine the Direction of Bitcoin Give a "Cooling Down" Signal Again! - Coin Bulletin
According to CryptoQuant analyst Avocado_onchain, the increase in demand in the spot market supports the rise in the price of Bitcoin, while speculative pressure in futures contracts is decreasing.
CryptoQuant analyst Avocado_onchain analyzed market trends that affect Bitcoin price increases. In his previous observations, the analyst stated that the Bitcoin bull cycle that started in the first half of 2023 was initially guided by the futures market and then the increase in spot market activities accelerated price increases.
As of March 2024, Avocado_onchain noted that trading volumes in both futures and spot markets had decreased for a long period, but starting from October, trading volumes in both markets began to increase, triggering Bitcoin's price increase.
Recently, an analyst pointed out that despite the decrease in futures market activity, demand in the spot market continues to increase, indicating that speculative excess has cooled in the futures market and buying pressure has increased in the spot market.
In the future, it is stated that there will be overheating and liquidation cycles in the futures market, and this will contribute to the price increase of Bitcoin. It is thought that this price movement will encourage more capital inflow into the spot market.
In addition, in the analysis of funding rate using the 30-day exponential moving average (EMA), Avocado_onchain, indicating that there are no signs of overheating in the late period, said that there is a high probability of Bitcoin continuing its upward trend and significant growth potential.