Bitcoin Price Wobbles: Spot Volume, Futures Sentiment Dip
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Bitcoin's price, while currently hovering around $107,100, shows signs of weakening according to recent on-chain data analysis. Despite a recent bounce from under $99,000 to over $106,000, indicators suggest potential for a retest of the $99,000 support level. Data from Glassnode reveals a significant cooling in both spot and futures markets. Spot trading volume has plummeted to $7.7 billion, far below levels seen during previous rallies, reflecting a shift from bullish enthusiasm to caution. This lack of buying pressure increases the risk of a price drop below $99,000 unless renewed demand emerges. The futures market mirrors this trend with a 7% drop in open interest over the weekend, falling from 360,000 BTC to 334,000 BTC. Funding rates have also been steadily declining since Bitcoin's Q1 2025 peak. The decrease in both annualized funding rates and the 3-month rolling basis further indicates waning confidence among futures market participants and a reluctance to maintain long positions. While the $93,000-$100,000 support zone, heavily accumulated during the Q1 2025 high, has held so far, the combined pressure of low spot volumes, declining on-chain activity, and fading futures sentiment could test this support. If investors with a cost basis in this range start selling, Bitcoin's price could easily fall below $99,000. The overall picture paints a cautious outlook for Bitcoin's short-term price movement, highlighting the need for renewed buying pressure to prevent a further decline.
(Source: https://www.newsbtc.com/news/bitcoin/bitcoin-to-go-below-99000/)
