Crypto analyst CryptoCred recently offered insightful commentary on the price movements of Bitcoin (BTC/USD) and Ethereum (ETH/USD), focusing on the critical role of futures market data and market structure in navigating the volatile world of crypto trading. In his latest “Monday Markets” analysis, CryptoCred observed a notable surge in Bitcoin’s futures market quarterly, reaching an annualized rate of approximately 8%-9%. While he considers this jump “not too crazy,” he emphasizes the importance of utilizing multiple indicators to gain a comprehensive understanding of the market landscape.
CryptoCred presented two potential scenarios for Bitcoin:
1.
A “steepening trend” with increased open interest and suppressed funding rates.
This scenario could suggest the emergence of new short positions entering the market.2.
A downward price movement accompanied by increasing open interest and rising funding rates.
This scenario could indicate aggressive long positions buying the dip with leverage.Since January 2024, open interest has seen a substantial increase, rising from approximately $19 billion to its current level of $33 billion. CryptoCred stresses the need to consider all relevant indicators in conjunction with each other to develop a coherent picture of market conditions. “You must use them together to come to sort of coherent picture,” he states.
Regarding Bitcoin’s technical analysis, CryptoCred observes a bearish market structure on the weekly timeframe, but notes the emergence of potential signs of a market structure reversal. He identifies key levels to watch:
*
$65,200:
A potential daily trigger for bullish continuation.*
$61,700:
The nearest support level.*
$64,000:
A short-term inflection point.For Ethereum, CryptoCred identifies fewer opportunities for significant price movements, noting its ongoing decline against Bitcoin. He suggests potential entry points at extreme price levels:
*
Below $2,500:
For a possible bounce.*
Above $2,800:
For a stronger bullish signal.CryptoCred emphasizes the importance of combining multiple indicators and timeframes for informed trading decisions, reminding viewers that “there’s no risk-free trade, no free lunch” in the crypto market. He advocates for a comprehensive approach to analysis, emphasizing the need to consider all available information before making any trading decisions.
