The symmetrical pattern in the shape of a triangle that has been restricting the price of Bitcoin (BTC) for almost 20 days now breaks to the upside, as is evident from the chart of Bitcoin (BTC) that was published this week.
However, an entirely different story is being told if the derivative metrics are to be taken into account. Professional traders have been reluctant to buy more leveraged positions. At the same time, they are charging more than usual to provide downside protection.
Will Bitcoin Continue Its Upward Trend Even If Macroeconomic Conditions Continue to Worsen?
The performance of global markets will play a role, at least partially, in determining whether or not Bitcoin will find support between $30,000 and $31,000.
Over a decade has passed since the previous time that American stock markets experienced a downward trend that lasted for seven weeks in a row. The number of sales of newly constructed homes in the United States fell for the 4th consecutive month, marking the largest streak of declines since 2010, October.
The industry providing services on-demand in China experienced the worst modification ever recorded, a drop of an astounding 20% year-on-year. The data that was released by the government on May 30th indicates that consumer spending on internet services during the period from January till April totaled $17.7Bn.
After investors were driven to seek refuge in cash positions as a result of inflation, increasing interest rates, and other macroeconomic uncertainties, the value of stock offerings in Europe reached its lowest point in the past 19 years. Bloomberg estimates that transactions following on from first public offerings as well as IPOs will only raise a total of $30 billion in total throughout the entirety of 2022.
Because investors are pricing in higher odds of a downturn, which is primarily driven by worsening global macroeconomic conditions, it has now become easier to know the reason behind the difference between the comparatively weak date from the derivatives and the recent recovery of Bitcoin price to $32,300. This is because investors have been pricing at higher chances of another downturn coming.