Bitcoin[1] trading at $49,206, up almost 6% over the last two days, the top coin seemed to have started the week on a high note. While BTC still rode on a wave of volatility, the recent bullishness in price stirred the market anticipation of a high Bitcoin yearly close.
The king coin’s move above the crucial $49K resistance could be the last move to reclaim the $50K and above price closing by year-end[2]. However, with a number of metrics still tipping towards bearish and the network activity looking low, there were some hurdles that still plagued BTC’s path ahead.
Price a crossroads
Generally, when BTC’s price peaks, the RSI of Open Interest often hits the overbought zone, following that, the price often begins a corrective phase. Notably, Open Interest RSI peaks and the market’s price tops have been spotted together.
As seen below, we’ve had an overheated futures market with high-leverage positions as BTC hit a new high of $69K.
Source: CryptoQuant
Looking at the net flow in derivatives, one can match levels when BTC began a rally from $40K in late September. Negative derivatives Netflow and the open interest’s RSI both point to a possible future market rebound which could mean that the corrective phase may be nearing its end.
However, the retail sentiment towards Bitcoin broke a 30-day low, suggesting a wholesale drop in market confidence over the last month. Further, Bitcoin’s funding rates have seen a few short-term dips into negative territory, signaling a potential shift to a bearish outlook among derivative traders.
Source: Sanbase
So an upswing in funding rate in the near term can mark euphoria rekindling alongside a better-leveraged market. The same can also nudge BTC’s spot prices in the right direction.
Skepticism still prevails
Since December beginning, the
