Originally published on: September 19, 2024
After the US Federal Reserve’s interest rate cut on September 18, Bitcoin saw a 6% surge, reaching a three-week high near $63,500. Despite this, derivatives metrics show that Bitcoin bulls are cautious about increasing leveraged positions, putting pressure on the $62,000 support level.
The recent decrease in US jobless claims and the stock market reaching all-time highs have boosted investor sentiment. However, concerns about the upcoming US presidential election and its impact on the global economy linger, with billionaire investor Ray Dalio warning about societal challenges.
With uncertainties in the political landscape, Bitcoin derivatives traders are hesitant to take bullish positions too quickly. The focus now shifts to whether traders are gaining confidence in the $62,000 support level through analyzing the Bitcoin futures funding rate and the put-to-call volume ratio in the BTC options market.
Analyzing these metrics shows that while retail traders remain cautious, the reduced demand for downside protection suggests a level of comfort with the $62,000 support. As the market continues to evolve, it will be interesting to see if Bitcoin is poised to reach new highs. Subscribe for more insights on investment opportunities, risks, and trading strategies in the ever-changing cryptocurrency market.