Bitcoin supply on futures exchanges is on the rise.
In a CryptoQuant Quicktake released today, market analyst Abram Chart noted that Bitcoin supply on futures exchanges is rising this month which he says is not good for the short term.
“By monitoring the Derivative Exchanges of Bitcoin, we find that the supply on the future exchanges has increased since the beginning of this month! This huge rise in the futures exchanges can be used as liquidity to open long or short positions, which is not good for the short-term,” the analyst wrote.
Notably, according to Abram, considering the overarching macroeconomic conditions and bearish outlook of the market with increased leverage, sellers could easily put the leading digital asset under more sell pressure.
“Bitcoin Funding Rates indicator is negative until the moment, and the bears dominate the market so far, and they can easily put more sell pressure.”
Derivative Exchanges reserve continues to rise#Bitcoin Funding Rates is negative at the moment…, and they can easily put more sell pressure.”
by @abramchartRead More👇https://t.co/nUn8YUdrcF
— CryptoQuant.com (@cryptoquant_com) September 8, 2022
It bears mentioning that an increase in inflow to Derivative exchanges can be a good thing as it reveals an increased risk appetite as traders look to increase their exposure with leverage. However, considering the lack of narrative shift, Abram believes it may lead to more downside for the asset.
In the comments on Twitter, a user noted that the Put/Call ratio is at its most extended since May, which saw a lot of downside price movement. Therefore, according to the user, market makers are most likely betting that the price of Bitcoin will continue to slide in the short term.
Normal markets also looking to regress, Put/Call ratio back at it’s most extended since May. Prior to the biggest moves downward this Summer.
MMs betting we go down in the short term at least. pic.twitter.com/TWPCbgNwDg
— Craig Mako (@CraigMako) September 8, 2022
Notably, Bitcoin has been under significant sell pressure recently as old whales start moving years-old dormant Bitcoin to exchanges, which CryptoQuant says is a bearish signal. On Wednesday, The Crypto Basic reported that 8-year-old 15k BTC had been moved over ten days, with some of the cache sent to Kraken.
Unsurprisingly, as the sellers appear to Circle, Bitcoin detractor Peter Schiff has once again called on Bitcoin bulls to dump the crypto asset. Calling Bitcoin a “sinking ship,” Schiff warned that investors abandon the asset before the market collapses.
It is anyone’s guess where the Bitcoin bottom will be. Still, as Galaxy Digital’s Mike Novogratz stated in April, the best bet for the asset would be for the Fed to turn dovish and allow for economic expansion, which will likely return investors’ risk appetite for assets like Bitcoin.
Bitcoin is trading at the $19,315.50 price point, 2.92% up in the last 24 hours, rebounding off lows below $19k yesterday.
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Source: https://thecryptobasic.com/2022/09/08/more-downside-for-bitcoin-as-derivative-exchange-btc-reserves-rise/?utm_source=rss&utm_medium=rss&utm_campaign=more-downside-for-bitcoin-as-derivative-exchange-btc-reserves-rise