Bitcoin Futures Market Far From Overheated as Price Tests $9,600: Futures Friday
Bitcoin Breaks Away From Stock Market Following Halving: Crypto Market Daily
Large-cap cryptocurrencies are underperforming against Bitcoin. Ethereum (ETH) and EOS gained 7.62 percent and 5.07 percent, respectively.
Bitcoin greatly outperformed U.S. stocks yesterday
Bitcoin and the United States stock market diverged wildly, yesterday. The stock market formed a double top around 2 PM UTC on Wednesday then made a huge retracement. Meanwhile, BTC kept showing bullish momentum and broke through $9,150 last night.
Traders are buying at market price and pushing up the premium.
From OKEx trading data, we have seen active buying power in the last 24 hours.
Buy Taker Volume was consistently greater than the Sell Taker Volume until 10 AM UTC — indicating market participants were rushing to open long positions at market price.
Moreover, the futures market has shown a positive premium over spot price again this morning. At press time, BTC Basis on Quarterly Futures (BTCUSD0626) has increased to more than $50, the largest premium since May 9.
Net outflow from exchanges
According to Glassnode’s data, investors are withdrawing BTC from exchanges after the leading cryptocurrency’s third block reward halving event. The Exchange Net Flow decreased significantly — indicating investors are currently reluctant to sell their bitcoins.
Bitcoin technical analysis
In yesterday’s edition of Crypto Market Daily, we noted that short-term momentum is still in favor of the bulls. The actual price move is even stronger than expected. The next thing to focus on is the $9,130 support level, per OKEx BTC Quarterly Futures (BTCUSD20200626) price. As long as the support holds, bulls are still in control of the market.
However, Open Interest (OI) dropped quickly on the OKEx derivatives market after hitting $9,900. It may indicate that some previous buyers have closed their positions and have taken profits. For intraday trading, chasing for the price in an uptrend may prove risky.
Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary
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