Bitcoin risks extended retreat as April rally was futures-driven: CryptoQuant

📰 Cointelegraph


📉 Bearish

AI Summary

CryptoQuant analysis shows Bitcoin's April rally was driven by futures trading rather than actual spot buying demand. This pattern has historically been followed by extended price declines, suggesting the recent gains may not be sustainable.

Market Impact

This could trigger profit-taking and increased selling pressure as traders become concerned about the sustainability of the rally. The lack of underlying spot demand may lead to accelerated downside moves if futures positions unwind.

💡 Trader Note: Monitor futures open interest and funding rates closely – declining OI with negative funding could signal the start of the predicted extended retreat.