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These 3 Factors Suggest Bitcoin is Ready to Explode Higher in Coming Days

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  • Bitcoin has firmly broken above $16,000, with the cryptocurrency flashing signs of immense strength as buyers move to shatter this incredibly strong resistance level
  • Analysts believe that this ongoing rally may just be getting started, as there are a multitude of different factors currently working in bulls’ favor
  • One trader explained in a recent tweet that funding rates and premiums have both been diving, signaling that margin traders are flipping short
  • This trend, coupled with stable open interest and no firm rejection above $16,000, seems to indicate that further upside could be imminent
  • He is targeting a move towards $16,700

Bitcoin is finally extending its recent uptrend after a prolonged bout of consolidation within the upper-$16,000 region.

The selling pressure that previously existed here was intense and catalyzed multiple selloffs. The break above this level is technically significant and could indicate that further upside is imminent.

If this level is flipped into support, BTC could begin a fresh leg higher that brings it ever closer to its all-time highs within the upper-$19,000 region.

One trader is pointing to various factors that all seem to indicate that another push higher is a realistic possibility.

He even notes that a move towards $16,700 could be imminent.

Bitcoin Shows Signs of Strength as Bulls Shatter $16,000 

At the time of writing, Bitcoin is trading up just over 2% at its current price of $16,050. This marks a notable surge from recent lows of $14,800 set following a rejection here a few days back.

Where BTC trends next will depend entirely on how it continues reacting to $16,000. If it plunges below this level and sees a strong retrace, it could mean that further downside is imminent.

Trader: These 3 Factors Suggest BTC Has Room to Rally

One analyst recently shared three trends that have led him to believe that upside is imminent for Bitcoin.

He spoke about these trends in a recent tweet, pointing to the lack of a hard rejection at this level, negative funding, neutral premiums, and a stable OI as factors that favor bulls.

“BTC – No hard rejection, held daily structure – Funding + Prem declining to 0 – OI stabilizing. This looks a lot better than expected. Might be time to ape long resistance into $16,500-$16,700 soon.”

Image Courtesy of Mac. Source: BTCUSD on TradingView.

The coming few days should provide insights into the strength of this movement, as all eyes are closely watching to see whether or not Bitcoin can establish any strong support at $16,000.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin

Crypto derivatives exchange Bybit launches quarterly Bitcoin futures

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Bybit announced Thursday that it will roll out a BTC/USD quarterly futures contract on Nov. 30. Two contracts will be offered at launch — BTCUSD1225, settling on Dec. 25, 2020, and BTCUSD0326, which will be settled on March 26, 2021.

Bybit says the new futures contracts have no funding fee, which means traders can hold the position without charge as long as the contracts are still in effect.

Like traditional futures contracts, Bitcoin (BTC) futures allow traders to buy and sell the digital currency at a predetermined price at a specific future date.

Bybit isn’t the first crypto trading platform to offer quarterly Bitcoin futures. Binance, a Malta-based exchange with the highest daily volume, launched its quarterly BTC futures contracts in January.

Demand for crypto derivatives is on the rise as more institutional investors come into the fold. Recent data from Wilshire Phoenix suggest that CME Bitcoin futures are having a significant impact on the digital currency’s price.

The report claimed:

“CME Bitcoin futures have grown to become significant, this is not only demonstrated through trading volume and open interest, but also by influence on spot price formation.”

Launched in December 2017, CME Bitcoin futures are now the second-largest BTC futures exchange by open interest. The top spot belongs to OKEx, according to data analytics firm Skew.

Institutions are increasingly viewing Bitcoin as a long-term investment opportunity. The likes of Paul Tudor Jones and Stanley Druckenmiller have also thrown their weight behind the flagship digital currency, potentially signaling a shift in institutional thinking.