Bitcoin could continue to consolidte under $65,200 in the near term – Bitfinex

Bitcoin (BTC) is approaching its Aug. 25 precocious of $65,200, a absorption threshold that could clasp BTC successful a consolidation portion for much weeks, according to the latest variation of the “Bitfinex Alpha” report.

BTC is up astir 6% since the Fed chopped the US involvement complaint by 50 ground points. Yet, the study highlighted that Bitcoin’s existent rally is driven chiefly by futures trading alternatively than spot marketplace activity, which raises concerns astir imaginable volatility and correction.

Derivatives-fueled rally

Global unfastened involvement (OI) successful Bitcoin futures has reached $19.43 billion, surpassing the Aug. 25 worth of $18.93 billion, portion the terms remains astir $1,000 beneath the section high. This suggests that the existent terms question is led by perpetuals and futures trading, contrasting with the spot market-dominated rally earlier this month.

Additionally, the spot marketplace buying has slowed arsenic the spot cumulative delta indicator flattened supra $63,500. This development, coupled with accrued futures activity, suggests the imaginable for a caller little timeframe scope oregon partial correction.

Although this tin beryllium seen arsenic a bearish sign, Bitfinex analysts pointed retired that OI does not bespeak however overmuch leverage derivatives traders are using. The precocious OI is apt driven by investors’ renewed interest in speculating connected hazard assets specified arsenic Bitcoin aft the complaint cut.

Furthermore, altcoin speculation is besides connected the rise, with immoderate tokens similar SUI and AAVE seeing 100% gains since their August and September lows. However, altcoin unfastened involvement has besides deed a higher precocious of $11.48 cardinal compared to the Aug. 19 highest of $10.74 billion.

ETF flows suggest otherwise

A counter-argument to imaginable consolidation is the renewed involvement successful spot Bitcoin exchange-traded funds (ETFs), which saw $397.2 cardinal successful nett inflows past week aft a play of outflows from Aug. 24 to Sept. 6.

The crypto market’s aboriginal absorption whitethorn beryllium influenced by broader marketplace trends, peculiarly if the S&P 500 continues to rally beyond all-time highs and Bitcoin follows suit.

The study highlighted that hazard appetite for Bitcoin from accepted concern has manifested itself done spot ETF inflows, historically contributing to a beardown correlation betwixt Bitcoin and the S&P 500.

The station Bitcoin could proceed to consolidte nether $65,200 successful the adjacent word – Bitfinex appeared archetypal connected CryptoSlate.