Rager set $36,000 as a critical price mark for the market to regain confidence. At the same time, other traders expect $31,000 to be a critical area of support that could prevent further downside.
Analyst Allen Au has noted a pattern in Bitcoin’s bull phases for 2013, 2017, and the current price action. The analyst believes that after a 60-day period, BTC’s price volatility has reduced from V1 to V2, as seen in the chart below.
Many experts believe Bitcoin is setting the stage for a big move either up to previous highs or down below its yearly open. Analyst Checkmate from Glassnode Insights has recorded an increase in activity in the spot and derivatives market and on-chain metrics.
According to Glassnode’s Net Transfer Volume from Exchanges for the past two weeks, this trend could be reversing. During this period, there have been more “positive” exchange outflows with around 2,000 BTC leaving these platforms every day.
Moreover, Bitcoin-based derivates have stayed relatively quiet after May’s “Great leverage flush back”, Checkmate noted. He claimed the following:
Since the sell-off in May, futures open interest has remained bound between $10.7B and $13.0B with only a handful of notable builds or declines within that range. Open interest remains 57% below the ATH set in April as Coinbase went public.
In addition, volume in the derivates sector has been on a decline. Thus, Bitcoin could have more room to recover, as there is less leverage at play to impact the market. Experts are yet divided on future price actions, but they agreed that a big move is forming.