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Bitcoin’s April Gain Was Driven by Perpetual Futures, Leaving Risk of Further Declines: CryptoQuant
Summary
- CryptoQuant said Bitcoin’s roughly 20%% gain in April was driven entirely by rising perpetual futures demand.
- The report said the divergence between falling spot demand and rising prices is an on-chain signal of a speculative rally rather than a structural one.
- CryptoQuant said the Bull Score Index fell to 40 from 50 in April, signaling that market conditions are turning bearish and that Bitcoin faces elevated downside pressure.
Forecast Trend Report by Period
Bitcoin rose in April, but the token may face further declines if spot demand does not recover, according to a CryptoQuant analysis cited by Cointelegraph on May 1.
CryptoQuant said in a report that Bitcoin’s roughly 20% advance during April, from $66,000 to $79,000, was driven entirely by increased demand for perpetual futures.
Its analysis showed that spot demand weakened even as Bitcoin’s price climbed. CryptoQuant said the divergence between rising prices and falling spot demand is one of the clearest on-chain signals that the rally is speculative rather than structural.
The firm said the pattern resembles the early stages of the 2022 bear market. In 2022, futures demand also surged while spot demand remained relatively weak, followed by a prolonged price decline. Against that backdrop, Bitcoin is now under elevated downside pressure, the report said.
CryptoQuant’s Bull Score Index, a measure of market sentiment, also fell to 40 from 50 in April. The firm said a reading of 40 indicates market conditions are turning bearish and that the level has historically matched the range seen before sustained price weakness.
Uk Jin
wook9629@bloomingbit.ioH3LLO, World! I am Uk Jin.
