{"id":338789,"date":"2021-09-14T00:05:00","date_gmt":"2021-09-13T21:05:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-price-flirts-with-40k-but-derivatives-data-is-still-bullish\/"},"modified":"2021-09-14T00:05:00","modified_gmt":"2021-09-13T21:05:00","slug":"bitcoin-price-flirts-with-40k-but-derivatives-data-is-still-bullish","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-flirts-with-40k-but-derivatives-data-is-still-bullish\/","title":{"rendered":"# Bitcoin price flirts with $40K, but derivatives data is still bullish"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40c714e29f6\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40c714e29f6\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-flirts-with-40k-but-derivatives-data-is-still-bullish\/#Professional_traders_have_been_bullish_for_the_past_five_weeks\" >Professional traders have been bullish for the past five weeks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-price-flirts-with-40k-but-derivatives-data-is-still-bullish\/#Futures_open_interest_remains_healthy\" >Futures open interest remains healthy<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin price flirts with $40K, but derivatives data is still bullish <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>The price of Bitcoin (BTC) is facing an intense period of volatility since moving from a $52,950 top on Sept. 7 to a $42,800 low just two hours later. More recently, the $45,000 support was held for a couple of days despite being heavily tested, and this triggered a $3,400 up- and down-swing on Sept. 13.<\/p>\n<p>There\u2019s little doubt that shorts \u2014 traders betting on a price decrease \u2014 have taken the upper hand since the liquidation of $3.54 billion worth of long (buyers) futures contracts on Sept. 7.<\/p>\n<p>MicroStrategy\u2019s Sept. 13 announcement that it added over 5,050 Bitcoin at an average price of $48,099 was not enough to reestablish confidence, and the cryptocurrency\u2019s price remained unchanged near $44,200.<\/p>\n<p>While the impact of shorts may be being felt, it\u2019s more likely that regulatory concerns continue to suppress markets, as the United States Treasury Department has reportedly discussed potential regulation for private stablecoins, as <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/technology\/exclusive-us-treasury-financial-industry-discuss-cryptocurrency-stablecoins-2021-09-10\/\">reported<\/a> by Reuters on Sept. 10.<\/p>\n<p>The growing interest from regulators comes as the stablecoin market capitalization has grown from $37 billion in January to its current $125 billion. Furthermore, both Visa and Mastercard\u00a0have reiterated their interest in stablecoin-related solutions.<\/p>\n<p>Regardless of the reason behind the current price weakness, derivatives contracts have been displaying bullish sentiment since Aug. 7.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Professional_traders_have_been_bullish_for_the_past_five_weeks\"><\/span>Professional traders have been bullish for the past five weeks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Bitcoin quarterly futures are the preferred instruments of whales and arbitrage desks because they have the significant advantage of lacking a fluctuating funding rate. However, these might seem complicated for retail traders due to their settlement date and the price difference from spot markets.<\/p>\n<p>When traders opt for perpetual contracts (inverse swaps), derivatives exchanges charge a fee every eight hours depending on which side demands more leverage. Meanwhile, fixed-date expiry contracts typically trade at a premium from regular spot market exchanges to compensate for the delayed settlement.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/567ecb1f-b0e0-4964-8f90-823de4808c44.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin three-month futures annualized premium. Source: Laevitas<\/em><\/figcaption><\/figure>\n<p>A 5% to 15% annualized premium is expected in healthy markets because the money locked in these contracts could otherwise be used on lending opportunities. This situation is known as contango and h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens on almost every derivatives instrument.<\/p>\n<p>However, this indicator fades or turns negative during bearish markets, causing a red flag known as \u201cbackwardation.\u201d<\/p>\n<p>The above chart shows the premium (basis rate) rising above 8% on Aug. 7 and sustaining this moderate bullishness ever since. Thus, data is exceptionally healthy and depicts hardly any lack of conviction, even with Bitcoin testing the sub-$44,000 level twice in the past 15 days.<\/p>\n<p><strong>Related: <\/strong><strong><em>Regulatory and privacy concerns trail SEC\u2019s threat to Coinbase<\/em><\/strong><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Futures_open_interest_remains_healthy\"><\/span>Futures open interest remains healthy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The $3.54 billion in liquidations across derivatives markets on Sept. 7 definitely hurt overleveraged traders, but the open interest on Bitcoin futures is still healthy in the grand scheme of things.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-09\/9f3c3e99-e0ab-4913-81aa-371ceb0993cd.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin futures aggregate open interest in USD. Source: Bybt<\/em><\/figcaption><\/figure>\n<p>Check out how the current $14.8 billion figure is 23% above June\u2019s and July\u2019s $12 billion average. This contradicts speculations that traders have been severely impacted and are hesitant to create positions due to Bitcoin\u2019s volatility or somehow fearing an impending bearish event.<\/p>\n<p>There should be no doubt, at least according to futures markets, that investors are neutral to bullish despite the recent price correction. Of course, traders should monitor important resistance levels, but so far, $44,000 has held firm.<\/p>\n<p class=\"post-content__disclaimer\"><em>The views and opinions expressed here are solely those of the <\/em><a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/noshitcoins\"><em>author<\/em><\/a><em> and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.<\/em><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-price-flirts-with-40k-but-derivatives-data-is-still-bullish\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin price flirts with $40K, but derivatives data is still bullish &#8221; The price of Bitcoin (BTC) is facing an intense period of volatility since moving from a $52,950 top on Sept. 7 to a $42,800 low just two hours later. More recently, the $45,000 support was held for a couple of days despite&#8230;<\/p>\n","protected":false},"author":1,"featured_media":338790,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDkvZjYyYzEwZDctZDY1NC00Y2E4LWFlOWEtNTc5N2JjMGQzZWNjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74972,74937,74858,74863,75012,74939,73785],"class_list":["post-338789","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-futures","tag-bitcoin-price","tag-bitcoin-regulation","tag-cryptocurrencies","tag-derivatives","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/338789","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=338789"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/338789\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/338790"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=338789"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=338789"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=338789"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}