Summary
- Recent gains in Bitcoin have been driven by demand in the perpetual futures market rather than spot demand.
- He said the structure resembles the period when Bitcoin formed a peak near $98,000.
- He said continued weakness in spot demand could prompt traders to take profits, increasing the risk of a price correction and stronger downside pressure.
Forecast Trend Report by Period
Bitcoin's recent rally has been driven by the derivatives market rather than spot demand, signaling a risk of a pullback ahead, according to an analysis.
Julio Moreno, CryptoQuant's head of research, wrote on X on April 22 that Bitcoin's latest price gains were driven entirely by demand in the perpetual futures market. Spot-market demand continues to decline.
He said the current structure resembles January, when Bitcoin formed a peak near $98,000. At that time, futures-market demand also fueled the advance, but the rally later gave way to a correction as spot demand failed to provide support.
In the current environment, traders taking profits could trigger a price pullback, Moreno wrote. If weakness in spot demand persists, downside pressure could intensify.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
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