Bitcoin

Resistance

Spot

BlackRock

The world’s largest cryptocurrency Bitcoin (BTC) has been flirting around $68,000 after facing strong rejection at $70,000 last week. While the <a href="https://coingape.com/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC price</a> has been showing strong signs of consolidation, the on-chain Bitcoin metrics reflect healthy development ahead.
<h3 id="bitcoin-futures-demand-bounces-back">Bitcoin Futures Demand Bounces Back</h3>
Bitcoin analyst Willy Woo has offered insights into Bitcoin’s recent market behavior, suggesting that the 2.5 months of consolidation under bullish demand has been beneficial for the cryptocurrency. According to Woo, this period of consolidation indicates that the price of Bitcoin has more room to rise before reaching a peak.
Woo highlighted that net capital flows into the Bitcoin network hit bottom during the consolidation phase and have been steadily increasing throughout May. As we have seen, the inflows into spot Bitcoin ETFs have bounced back strong over the past two weeks, with <a href="https://coingape.com/blackrock-ibit-becomes-largest-bitcoin-fund-overtaking-grayscale/" target="_blank" rel="noopener noreferrer nofollow">BlackRock overtaking Grayscale</a> recently. The daily demand from spot Bitcoin ETFs outweighs the daily BTC mined, by manifold times.
Additionally, Woo noted a resurgence in demand in futures markets, particularly among retail traders showing long demand.
Analyzing the funding rate for perpetual swaps, Woo observed a rebound in demand among retail traders, depicted by the blue-shaded region, while emphasizing that this demand is rising without reaching dangerously high levels of fear of missing out (FOMO).
<figure id="attachment_199311" aria-describedby="caption-attachment-199311" style="width: 100%" class="wp-caption aligncenter"><img decoding="async" class="size-full wp-image-199311" src="https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding.jpeg" alt="" width="2342" height="1786" srcset="https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding.jpeg 2342w, https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding-300x229.jpeg 300w, https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding-1224x933.jpeg 1224w, https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding-768x586.jpeg 768w, https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding-1536x1171.jpeg 1536w, https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding-2048x1562.jpeg 2048w, https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding-80x60.jpeg 80w, https://coingape.com/wp-content/uploads/2024/05/Bitcoin-Futures-Funding-150x114.jpeg 150w" sizes="(max-width: 2342px) 100vw, 2342px">
 <figcaption id="caption-attachment-199311" class="wp-caption-text">
 Courtesy: <a rel="noopener noreferrer nofollow" href="https://x.com/woonomic/status/1795543271877272017" target="_blank">Willy Woo</a>
 </figcaption>
</figure>
During this consolidation phase, a large number of Bitcoins have been moving off exchanges amid strong <a href="https://coingape.com/bitcoin-whales-in-accumulation-mode-btc-price-seller-exhaustion-apparent/" target="_blank" rel="noopener noreferrer nofollow">BTC whale accumulation</a>. This could lead to a BTC supply shock going ahead thereby putting upward pressure on the Bitcoin price going ahead.
<h3 id="btc-resistance-and-demand-zones">BTC Resistance and Demand Zones</h3>
Bitcoin analyst Willy Woo recently commented on the cryptocurrency’s price dynamics, highlighting the significant resistance level at $73,000. According to Woo, this price point continues to pose a formidable obstacle to Bitcoin’s upward movement.
However, Woo pointed out that if the price manages to surpass $72,000, there exists a substantial amount of liquidations that could potentially trigger a short squeeze. This scenario, as per Woo’s analysis, could propel Bitcoin’s price to soar past $75,000 and ultimately break its all-time highs.
In Woo’s opinion, it’s only a matter of time before fundamental demand factors trigger a price squeeze in the Bitcoin market.
The post <a href="https://coingape.com/bitcoin-futures-market-btc-price/" rel="noopener noreferrer nofollow">Bitcoin Futures Market Demand Soars, Will Spot BTC Price Follow?</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Bitcoin Futures Market Demand Soars, Will Spot BTC Price Follow?

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