Bitcoin has been steadily increasing since its January low of $32,933.33. While seeing a 28 percent increase in value. However, after forming a ‘double top’ formation near the swing highs of $45,500, the price fell. Bitcoin begins the week on a steady decline towards pivotal support at $40,000, where it has been for some time. Following a week of celebration for bulls, the present environment appears to be a harsh dose of reality as BTC confronts jittery stock markets, a rising US dollar, and other factors. The bullish Bitcoin narrative was put to the test this week as geopolitical tensions between Ukraine and Russia, as well as the likelihood of a 50 basis point Federal Reserve interest rate hike in March, weighed on the world’s largest cryptocurrency. However, Bitcoin fundamentals show that BTC is still in upward momentum. Here are some factors to consider. Bitcoin Spot Price Exceeds Futures Interesting activity has been taking place in Bitcoin derivatives markets during the ascent to and fall from local highs. Open interest leverage has been evaporating from futures markets, as reported by Twitter observers including Glassnode chief analyst Checkmate, and with it the possibility of being deleveraged or “liquidated.” Checkmate tweeted Sunday alongside a chart showing the de-risking: “Bitcoin futures leverage has fallen significantly this week, falling from 2.0% of Market cap, to 1.75%. How...
