Has the Bitcoin (BTC) chart finally formed a local bottom? CryptoQuant analysts have published their predictions.
An analyst from cryptocurrency analysis firm CryptoQuant recently suggested that Bitcoin could a local bottom has formed.
Over the past three weeks, Bitcoin has undergone a correction of about 15%, falling from $70,000 to $60,000.
According to the analyst, after yesterday’s significant correction, signs of a potential local bottom are starting to emerge:
Futures Market: Open positions have decreased by about $3 billion in the past three weeks, mainly with long position liquidations. The funding rate for long-term contracts is close to zero. This indicates a greater balance between buyers and sellers, leading to a healthier price structure.
Short Wallet: Price moves lower, touching short wallet strike price of $62.6k. Currently, short-term wallets are seeing slightly negative average returns. Historically, this point acts as support during an uptrend.
An important factor influencing price developments in recent months is: US macroeconomic data.
Uncertainty about the future of US monetary policy is weighing on investors’ risk appetite, analysts said. On Thursday, markets will be watching data on GDP and initial jobless claims. Inflation data (PCE) is due on Friday, which could determine short-term market sentiment.
According to the analyst, the current structure points to a local bottom, providing a ray of hope to investors in the chaotic cryptocurrency market.
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