The Chief Commercial Officer of Deribit, a cryptocurrency derivatives exchange, pointed out that the futures basis of Bitcoin has exceeded 10%, indicating that the market expects the asset to continue rising in the next year. With Bitcoin continuing to set yearly highs, multiple analysts believe that $45,000 is the next key resistance level.
Futures premium exceeding 10%
According to a report by The Block, Luuk Strijers, the Chief Commercial Officer of Deribit, stated that data shows that since early October, the premium of Bitcoin futures contracts expiring in March, June, and September of next year has been increasing.
The futures basis of Bitcoin (the price difference between spot price and futures contract price) has exceeded 10%, which is a strong indicator reflecting market sentiment. Strijers mentioned, “Bitcoin price broke through $44,000 in the early hours of Wednesday, briefly rising to nearly $44,500, before slightly falling to $43,700 at the time of writing.” Strijers attributed Bitcoin’s recent surge to various factors, including general optimism and expectations for multiple rulings on spot ETF applications.
Strijers also mentioned that people’s concerns have eased following the resolution of legal issues at Binance. He added, “There are also escalating geopolitical tensions, easing inflation, and a steady increase in institutional participation.”
Next key resistance level
With Bitcoin continuously setting yearly highs recently, a large number of leveraged positions have been liquidated. According to data from Coinglass, the total amount of liquidated contracts in the past 24 hours is close to $250 million, with over 80,000 people being liquidated, including approximately $163 million worth of short positions being liquidated.
Source:
Coinglass
Youwei Yang, Chief Economist of cryptocurrency mining company BIT Mining, believes that $45,000 is the next key resistance level for Bitcoin, indicating a high likelihood of a short squeeze above this price threshold. Yang stated, “There are currently a large number of leveraged positions, and if the market becomes more volatile, there may be simultaneous short squeezes and long liquidations.”
Analyst Gustavo Faria also recently mentioned the price threshold of $45,000 for Bitcoin, stating on the Korean blockchain analysis platform CryptoQuant that this price level is significant for a considerable portion of Bitcoin holders. Faria said: