Key Insights:
- The latest Bitcoin price upside can fade without spot buying, despite rising futures open interest.
- Selling pressure remains a concern for Bitcoin, as leveraged long positions have declined sharply.
- Bitcoin ETF demand has weakened again, following Monday’s $144 million outflow.
After facing a rejection at $65,000, the Bitcoin price is currently flirting with $63,600 levels. Market experts note that the BTC market is currently futures-driven but lacks enough spot demand.
Furthermore, sellers still hold strength, and some volatility could soon kick in for BTC in the near-term.
Bitcoin Price Rally Lacks Spot Market Support
Ki Young Ju, the CEO of CryptoQuant, said that the current Bitcoin price rally comes on the heels of the futures market.
However, Ju stated that while Bitcoin futures open interest is rising, the on-chain spot demand remains net negative. He said a sustainable rally requires support from both spot and futures markets.
Ju pointed to April’s market action as an example, noting that futures-driven rallies tend to fade when they lack sufficient spot market demand.
Another crypto analyst,, Ardi, stated that the recent Bitcoin price pullback has led to an aggressive reduction in leveraged long positions.
According to the analyst, Cumulative Longs & Shorts Delta has fallen nearly 50%. This dropped from more than $400 million to $226 million. Bitcoin’s Open Interest has also declined significantly during the move.
Ardi said the combination typically indicates that existing long positions are being closed or liquidated. It highlights the weakness in any bullish positioning in the market.
He added: “$62.5K has saved this BTC range from breaking down six separate times. The next time we lose that pivot, we’re heading back towards the range lows”.
Bitcoin Sellers Still Hold the Grip
Blockchain analytics firm Glassnode reported that the selling pressure in BTC appears to be easing, showing signs of seller exhaustion. However, it added that the current levels remain below those seen during previous Bitcoin bear market bottoms.
According to the firm’s Seller Exhaustion Constant (30d), the historical bottoming signal has not yet been confirmed. Glassnode said it will continue monitoring whether selling pressure weakens further.
Moreover, analyst Crypto Patel warned about the rising Bitcoin (BTC) reserves on crypto exchange Binance. According to Patel, Binance’s Bitcoin reserves have climbed to approximately 667,500 BTC, their highest level since February. This compares with roughly 616,000 BTC in April.
Patel warned that the exchange reserves may continue rising while the BTC price weakens. If this happens, the growing supply held on exchanges could create additional selling pressure.
Bitcoin ETF Flows Dry Up
Following last week’s strong inflows, the flows into US spot Bitcoin ETFs have dried up yet again. Following $144 million outflows on Monday, the spot Bitcoin ETFs just saw minor inflows of $7.8 million on Tuesday, August 11.
As per data from Farside Investors, only BlackRock’s IBIT managed an inflow of $50.2 million. On the other hand, Fidelity’s FBTC, Ark Invest’s ARKB, Franklin’s EZBC, and VanEck’s HODL registered net cumulative outflows.
Bhushan is a FinTech enthusiast and holds a good flair for understanding financial markets. His interest in economics and finance draws his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In his free time, he reads thriller fiction novels and sometimes explores his culinary skills.
