Why reduced Bitcoin futures volume may signal the start of a new bull trend
Volume and open interest in Bitcoin futures have been in a steady decline, but this could help catalyze the next rally. Bitcoin (BTC) futures volume and open interest are declining rapidly. Data shows that since the September peak, BTC futures volume has dropped by 60% from over $25 billion to around $10 billion.Bitcoin futures volume by exchange (September). Source: Digital Assets DataWhile the decline in trading activity could ostensibly seem like a negative metric, it could also indicate that a bull cycle is emerging. Why declining futures market activity could boost Bitcoin priceThe....
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Bitcoin managed to touch the 5th arc pair of resistance on the 2-hour chart setup. This generated a sell signal. Since then it managed to re-test the arc and was rejected. The long-term trend is still up. But the short-term trend is likely going to be down. Looking at this bull setup, a reasonable target is the 1×2 Gann angle at ~ 940. Let’s look at a bear setup from the swing high of $1050 (Kraken): I have overlaid the bear setup on top of the bull setup and have labelled the intersection of the 5th arc pair of each setup. There are arrows at each point that stand out as likely targets in....
Over the past year, the trading volume of futures had surged. Thanks to the crypto bull of 2021, a wide range of decentralized projects have flourished, which has catalyzed the growth of the futures market. As the crypto bull advanced, the futures market remained popular throughout 2021. Right now, it has even surpassed the spot market and become the mainstream investment choice among crypto users. Meanwhile, the trading volume of futures has reached new highs despite the switch to a bear market. Earning multiplied returns by trading futures is one of the primary ways to profit from a....