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According to Bitcoin derivatives, the spot asset may rally quite soon, Bloomberg suggests
According to Bloomberg analysts, Bitcoin futures are on their way to recovery as traditional financial markets have shown strength in the last few days. As analysts suggest, they expect increase in open interest and a breakthrough of the triangle pattern, which will positively affect the price of the spot asset.
Breaking through the pattern
The symmetrical triangle on the Bitcoin charts was one of the main points for the whole market, as the spot trading pair touched both sides of the pattern numerous times in the last three months.
The more local version of the same pattern–ascending range could give us more hints about previous and current movements of the first cryptocurrency. According to it, Bitcoin is still ranging even after touching the bottom of the pattern at least three times.
Previously, the market was expecting a breakthrough after digital gold reached the resistance of the rangebound at $45,200. But because of the absence of significant buying power, Bitcoin failed to break above $45,000 and tumbled down to $37,925.
Open interest on the rise
Another factor that speaks in favor of digital gold is the global rise of open interest for derivatives assets, suggesting that the market is coming “alive,” and traders are opening more positions than before.
The final signal toward the normalization of the market structure would be given after the first cryptocurrency breaks from the consolidation range and enters a new uptrend, which is already expected by industry experts like Willy Woo.
Previously, leading on-chain analysts stated that the nature of Bitcoin market cycles has completely changed, and we will not see the traditional “four-year halving cycles.”
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