[Analysis] "Bitcoin sees bullish sentiment strengthen in the futures market…near-term upside expectations rise"

Bitcoin (BTC) appears to be seeing an expansion of bullish sentiment in the perpetual futures market.

On the 17th (local time), on-chain analytics firm CryptoQuant said in its weekly report that "ahead of the U.S. Federal Reserve’s (Fed) rate decision, bullish sentiment among investors in the perpetual futures market is strengthening." CryptoQuant added, "As Bitcoin pushed above $70,000, short (sell) positions were liquidated, and above $73,000 fresh long (buy) positions flowed in, reflecting expectations for near-term gains."

CryptoQuant noted that "funding rates and futures trading volume also support bullish positioning." It analyzed that "Bitcoin funding rates have (recently) flipped from deeply negative territory to positive, while Ethereum funding rates have largely remained positive," adding that "investors are paying to maintain long positions."

It also referenced trends in perpetual futures. CryptoQuant said, "In the perpetual futures market, a buy-side dominant flow is emerging," adding that "the ratio of futures market buy-to-sell volume is above 1 for both Bitcoin and Ethereum" and that "since mid-March, buy volume has been outpacing sell volume."

However, it pointed out that "as prices rise, Bitcoin inflows to exchanges are also surging." CryptoQuant said, "(Recently) hourly Bitcoin deposits reached about 61,000 coins, and 63% were large deposits," adding that "this pattern has historically been interpreted as a signal foreshadowing potential selling pressure." It continued, "Bitcoin could face resistance in the $75,000–$85,000 range," noting that "this zone overlaps with investors’ realized price on an on-chain basis and served as resistance during bear-market rebound phases in the past."