Bitcoin derivatives data points to traders’ $50K BTC price target
1 min read
Bitcoin (
Such data is quite healthy, considering that Bitcoin’s price has surged by 52% since October. It suggests that excessive retail leverage longs didn’t drive the rally and subsequent liquidations.
Whatever caused the rally to $44,700 and its subsequent correction to the current $41,300 appears to be primarily driven by the spot market. This doesn’t necessarily mean that the bottom is in, but it significantly reduces the odds of cascading liquidations due to excessive optimism tied to the expectation of a spot exchange-traded fund (ETF) approval.
In essence, this is good news for Bitcoin bulls, as derivatives indicate that positive momentum hasn’t faded despite the price correction.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
