Market

Cryptoquant Issues On Chain Indicators Warning Of A Bitcoin Retreat

As BTC surges above $ 57,000, CryptoQuant claims it could see a pullback using on-chain analysis. The analytics firm says a number of BTC indicators are reaching levels that signal a possible correction.

The first indicator is the Bitcoin Funding Rate, which is defined as the recurring payment that futures traders pay. A positive value means that most traders are bullish and the long side pays this fee to the short side.

While negative values ​​are the opposite; Traders are pessimistic about Bitcoin and the short side has to pay the long side.

Another indicator are Open Interest (OI) futures. This metric shows the total number of futures contracts opened at the end of the trading day.

Financing Rate and Futures Open Interest vs. BTC Price | Source: CryptoQuant

As the graph above shows, both indicators have been gaining in value recently. The red flags are where similar values ​​were previously seen on the chart, and every time the BTC price saw a correction shortly thereafter.

Also, it looks like both long-term and short-term holders are profitable at the moment, which means that at this level they are more likely to take profits, as shown by two indicators, the long-term SOPR and the short-term SOPR.

Long term and short term SOPR | Source: CryptoQuant

This fact, combined with the rising funding rate and the open interest of futures, leads Quant to believe that Bitcoin could see a retreat soon in the short term.

And it seems that the analytics firm’s prediction was inspired as Bitcoin price fell from a high of $ 57,627 to a low of $ 54,477 in the past 24 hours before returning to current levels of $ 56,324, which is a long one Candle generated on the 1-hour chart.

Source: TradingView

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Annie

According to Newsbtc

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

PropiChain’s Token Presale Turns Heads as the First DeFi Platform to Merge NFTs with AI 

The hype around PropiChain’s token presale is due to its innovative integration of NFTs and…

15 mins ago

UK Pension Fund Cartwright Encourages 3% Allocation to Bitcoin Investment

UK pension fund Cartwright advised the country's first defined benefit pension fund to allocate 3%…

2 hours ago

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

3 hours ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

6 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

9 hours ago

This website uses cookies.