Crypto analyst and trader Joseph Young believes Bitcoin has retreated to February 2021 levels and is bullish on the currency’s future movement.
Meanwhile, the Santiment analytics firm has published data indicating that certain current factors are reducing the risk of a Bitcoin price drop.
“Much more effective spot-driven recovery”
The flagship cryptocurrency is trading at roughly the same level as it was in early February this year, according to the CryptoQuant BTC chart – $38,560 on February 8.
He also stated that, despite this, the market for Bitcoin futures contracts remains significantly lower than it was at the beginning of February.
Overall, Young is optimistic about Bitcoin’s future movements, claiming that we are witnessing a “much healthier spot-driven recovery.”
Bitcoin is where it was in February 2021. Yet, the futures market open interest is significantly lower. This is a much healthier spot-driven recovery. Optimistic. — Joseph Young (@iamjosephyoung) August 2, 2021
“The price of Bitcoin has less downside risk.”
A chart shared by Santiment data aggregator shows that the Bitcoin funding rate on the BitMex exchange continues to oppose the major short traders and is successfully preventing another Bitcoin decline so far.
According to the chart, the ratio of Bitcoin longs to shorts has been fluctuating between bearish and neutral since the start of the BTC decline in May following the April all-time high of close to $65,000.
As a result, the risk of Bitcoin’s price falling is reduced, according to Santiment’s tweet.
The ratio between longs vs. shorts continues to fluctuate between #bearish and neutral since #Bitcoin’s drop in May. The good news about #Bitmex’s contract funding rate continuing to veer negative is that there is less downside risk for $BTC’s price. — Santiment (@santimentfeed) August 3, 2021