Bitcoin futures indicators show a ‘supportive sign’ for further upside in the asset’s price in spring 2024. This was stated by Deribit’s chief commercial officer Luuk Striers, The Block reports.
According to the expert, the futures premium for contracts expiring in March, June and September has continued to widen since early October.
At the moment, the basis, i.e. the difference between spot and futures prices, has surpassed the 10% level.
«An increase in the basis suggests the market expects a rise in the spot price. The annual basis is now 10-12%, implying the market expects the underlying asset to rise by 10-12% over the next year,» added Striers.
Analyst also noted a easing of concerns after the regulatory issues surrounding Binance were resolved. In addition, there is escalating geopolitical tension, cooling inflation and a steady rise in institutional engagement, he noted.
On December 5, the price of digital gold surpassed $43,500, and then tested the $44,000 level. The move spurred a large volume of liquidations.
BTCM chief economist Yu Wei Yan defined $45,000 as the next critical resistance level for Bitcoin, suggesting a heightened likelihood of a short-squeeze beyond this threshold.
He stressed that there remains a large open interest on both sides funded with leverage, exposed to liquidations in the event of heightened market volatility.
According to Coinglass, positions worth about $265 million were liquidated in the past 24 hours, $173 million of which were shorts.
Analysts at Bitfinex noted bulk of liquidations at the $41,950 and $42,200 levels. At these marks, Bitcoin’s price experienced a ‘bullish catapult’ as buying to close short positions pushed the quotes higher.
As of writing, the leading cryptocurrency was trading at $43,960. The coin’s market capitalization stands at $859 billion.
Earlier ForkLog experts shared views on the reasons for the current rally in digital gold.
Earlier in December, Matrixport analysts confirmed the forecast for Bitcoin to rise to $63,000 by April 2024.