Bitcoin (BTC) does not appear to have the strength to retest the all-time high of $ 67,000 it hit on October 20th, and this leads investors to wonder whether or not the timing of the bull run has been lost . Even when price faces these hurdles, it is too early to mark a test of the $ 58,000 support as the beginning of a descending channel.

One of the factors limiting the rally is regulatory uncertainty in the US. Anne T Regi, partner in government enforcement and investigations at Bracewell LLP and former chief attorney at the Commodity Futures Trading Commission (CFTC), says there are no easy answers for the agency to enact clear regulations.

On the other hand, increasing adoption has put pressure on traditional banks to look for crypto products. For example, the large Russian private bank Tinkoff, owner of a large online brokerage service, is working on crypto-related securities services, despite the fact that the Russian central bank has withheld publication in this way.

This week, Coinbase took the top spot as the most downloaded app for the United Stated Apple Store, which is amazing. Coinbase has beaten tech giants like TikTok, YouTube, and Instagram, and that’s not an easy task. Coinbase was first listed on the App Store in 2014 and was the most downloaded app in the US in 2017 and May 2021.

Professional traders stumbled but recovered

To determine how bullish or bearish the price is for professional traders, one should keep an eye on the futures premium – also known as the “base rate”.

This indicator measures the difference between longer-term futures contracts and the current stock exchange prices on the spot market. In healthy markets, also called contango, an annual premium of 5 to 15% is expected.

This price gap is due to the fact that participants are asking for more money to hold the payout longer and a red alert appears when the indicator fades or goes negative, known as “back”.

 

Notice how the sharp decline caused by a test of the $ 58,000 resistance on October 27th drove the annual futures premium to three-week lows. However, the indicator has recovered well to the current level of 17%, which signals a moderate upward trend.

To confirm whether this move is specific to this instrument, one should also analyze the options markets Bitcoin.

The 25% delta deviation compares similar call (buy) and put (sell) options and becomes positive when “fear” prevails. This situation reflects protective calls that are valued higher than similarly risky calls.

The opposite trend was sustained when the market makers went bullish, causing the 25% delta deviation indicator to slide into negative territory. Measured values ​​between minus 8% and plus 8% are generally considered to be neutral.

 

The delta deviation of 25% has been in the neutral zone since September 30th. The last low on October 25th was minus 6%, which is not enough to be considered a moderate uptrend. But even Bitcoin’s 12.5% ​​correction from $ 66,600 on October 21st to $ 58,200 on October 28th was not enough to scare professional traders.

While there are no signs of a downward movement in the Bitcoin derivatives market, the bulls should be concerned about a possible downward channel starting October 19.

There are currently no signs of stress from professional traders, so the correction should not be a problem after a 63% rally in three weeks that hit an all-time high of $ 67,000 on October 20th.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading movement involves risks. You should do your own research when making a decision.