Technical analyst CryptoCred offered insights into Bitcoin BTC/USD and Ethereum ETH/USD price action, emphasizing the importance of futures data and market structure in crypto trading.
What Happened: In the latest episode of “Monday Markets,” CryptoCred noted a jump in Bitcoin’s futures market quarterly to around 8%-9% annualized, which he considers "not too crazy." He emphasizes the importance of using multiple indicators to form a coherent picture of market conditions. The analyst highlights two potential scenarios for Bitcoin:
1. A "steepening trend" with increasing open interest and squashed funding rates, potentially signalling fresh shorts entering the market.
2. Price moving lower with increasing open interest and rising funding rates, suggesting aggressive longs buying the dip with leverage.
From January 2024, open interest surged from around $19 billion to $33 billion currently. CryptoCred stresses the importance of context, stating, “You must use them together to come to sort of coherent picture.”
On Bitcoin’s technical analysis, he notes the weekly timeframe showing a bearish market structure but with “emerging evidence of market structure reversal.” He identifies key levels to watch, $65,200 as a potential daily trigger for bullish continuation, $61,700 as the nearest support and $64,000 as a short-term inflection point.
For Ethereum, CryptoCred sees fewer interesting opportunities, noting its continued bleeding against Bitcoin. He suggests potential entry points at extremities, below $2,500 for a potential bounce and above $2,800 for a stronger bullish signal.
What’s Next: CryptoCred emphasizes the importance of combining multiple indicators and timeframes to make informed trading decisions, reminding viewers that "there’s no risk-free trade, no free lunch" in crypto trading.
The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
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