Technical Analyst Crypto Credit analyzed Bitcoin BTC/USD Recent price action and suggested trading strategies for consolidation range.
What happened: In his latest episode of Monday Markets, the analyst examined Bitcoin futures data and noted that the recent rally appears to be driven more by spot buying than leveraged futures positions.
He noted that the quarterly futures basis remained stable despite price increases and negative funding rates on major exchanges such as Bybit and Binance.
“Whatever is driving the market up, it's not perpetual because it's below the index,” CryptoCred noted, referring to the spot price.
The analyst stressed the importance of looking for divergences between price action and metrics such as open interest and funding rates. He warned against overinterpreting small moves, stating: “Most of the time, if this isn't here and the market is just following what you would expect… I'll just assume there's no signal there.”
Read also: Industry expert is “super bullish” on both gold and bitcoin and sees new phase of playbook as catalyst
Why it is important: For Bitcoin, CryptoCred identified $62,000 as a key technical level to watch. He pointed out possible scenarios such as funding rates turning more negative as the price approaches this level.
As for altcoins, CryptoCred noted From Ethereum Ethereum/USD Strong bounce, but suggests waiting for a possible higher low in the $2400 range before considering entries.
He saw Solarium SOL/USD as uninteresting at current levels after multiple tests of support.
The analyst also highlighted Tron's TRX/USD Recent strengthening, driven by meme coin activity on its blockchain. For traders looking to profit from Tron’s bullish trend, CryptoCred recommends focusing on low-flow pullbacks with decreases in open interest as potential entry points.
What's next?Bitcoin's influence as an institutional asset class is expected to be explored in depth at Benzinga's upcoming Future of Digital Assets event on November 19.
Read next:
Image: Shutterstock
Market news and data provided by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.