Bitcoin Stuck: Here Are 2 Things That Must Happen For BTC To Break $72,000

Name	Symbol	Market	Market Cap ($)	Algorithm
Solana	SOLUSD	Crypto	62,497,862,589	Not Mineable

Name

Symbol

Market

Market Cap ($)

Algorithm

Solana

SOLUSD

Crypto

62,497,862,589

Not Mineable

	Price Change	Price Change %	Current Price	Bid Price	Offer
	1.91	1.37%	141.63	141.62	141.63

Price Change

Price Change %

Current Price

Bid Price

Offer

1.91

1.37%

141.63

141.62

141.63

High Price	Low Price	Open Price	Prev. Close	52 Week Range
142.31	139.75	139.92	139.72	- - -

High Price

Low Price

Open Price

Prev. Close

52 Week Range

142.31

139.75

139.92

139.72

- - -

Exchange	Last Trade	Size	Trade Price	Currency
GDAX	04:49:59	0.101356	141.63	USD

Exchange

Last Trade

Size

Trade Price

Currency

GDAX

04:49:59

0.101356

141.63

USD

Price x Volume	Volume	Base Symbol	Related Pairs
21,762,972.29	154,032.56	SOL	SOLEUR	SOLGBP	SOLBTC

Price x Volume

Volume

Base Symbol

Related Pairs

21,762,972.29

154,032.56

Bitcoin Stuck: Here Are 2 Things That Must Happen For BTC To Break $72,000

13/06/2024 9:00pm

NEWSBTC

At spot rates, Bitcoin is firm, but traders doubt the uptrend following the unexpected dump on June 11. Currently, Bitcoin is stable, trending above $67,000 and down despite gains on June 12. Still, even at this level, there are concerns because the coin, despite all the confidence across the board, remains below $72,000. This reaction line is emerging as a key liquidation area. If broken, BTC could unleash a wave of short liquidation, accelerating the lift-off to $74,000 and beyond. Will Bitcoin Demand Soar In Spot Markets? Taking to X, one on-chain analyst said that Bitcoin is stagnating at spot levels below $72,000 because hedge funds are short on futures. Related Reading: Solana On-Chain Indicators Suggests A Return Of Bullish Sentiment, Is It Time To Buy SOL? Though this has been a known development for a while, hedge funds have stacked their BTC shorts via the Chicago Mercantile Exchange (CME) by over $1 billion in the last week alone. Therefore, the analyst says two things must happen to reverse this effect and support prices. Although the BTC shorting on CME is not necessarily a bearish signal, hedge funds are hedging by playing a sophisticated arbitrate strategy, and coin holders must look at fundamentals. Hedge funds are simultaneously shorting BTC futures on CME and buying on the spot market. Therefore, for the coin to break $72,000 and pierce $74,000, the analyst said users must buy at least 2X the amount of BTC futures shorted in the spot market. BTC Prices Must Fall For Short Sellers To Exit If there is no incentive to lift spot prices higher, then Bitcoin prices must fall. Falling prices will encourage short sellers, in this case, the hedge funds, to exit their positions lest they continue paying funding rates. In a bearish market, and when futures prices begin to fall, short sellers must pay longs for the index not to deviate. Whether there will be a spike in demand in the spot market remains to be seen. However, what’s evident is that institutional interest in Bitcoin is there, only that hedge funds, as seen from their arbitrage trade using CME, want to profit, regardless of price movements. Related Reading: Dogecoin Under Pressure And ‘Going To Zero’, Analyst Says – Here’s Why The analyst also shared another chart to solidify the bullish outlook. The trader used the “Growth Rate” metric to compare changes in Bitcoin’s market and realized cap. Currently, the metric is at around 0.001, way below 0.002, meaning the market is highly likely overheated. Bulls might be preparing to make a comeback. Feature image from DALLE, chart from TradingView

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SOLUSD Solana