Bitfinex Identifies Key Factor for Bitcoin Price Support

For bitcoin prices to maintain sustainable long-term growth, they must consolidate above the August peak of $65,200. This conclusion was reached by Bitfinex analysts in their report.

According to their assessment, September’s rally in digital gold was primarily driven by derivatives trading activity amid weak demand in the spot market.

Open interest in bitcoin products outpaced price growth. A key indicator — the delta of aggregate volume on the spot market — leveled off after the asset reached $63,500. Experts considered this a “troubling signal.” It indicates widespread use of leverage, increasing the likelihood of a short-term correction.

“We advocate for a cautious approach following the 22% rally we observed in BTC. It is quite possible that the price could form a new range near current quotes and consolidate for some time, as we have seen in previous periods,” the experts stated.

In their view, a positive factor is the “multi-day net positive flow” into bitcoin ETFs. The influx of liquidity into these products could balance the weak buyer activity in the spot market, Bitfinex analysts believe.

At the time of writing, digital gold has been trading roughly in the range of $63,000-$64,000 since September 19.

Earlier, QCP Capital suggested a positive impulse for the crypto market from anticipated economic stimulus measures in China.