Derivatives, Not Spot, Drove It Up... Bitcoin Breaks $80,000, Will It Be Different This Time?

▲ Bitcoin (BTC) ©Godasol

The backdrop to Bitcoin's (BTC) rebound to the $79,000 level appears to be strong buying pressure in the derivatives market rather than the spot market.

According to the cryptocurrency media outlet Bitcoinist on April 26 (local time), the recent Bitcoin rally was driven by an expansion of buying in the perpetual futures market rather than spot (cash) demand.

On-chain analyst Darkpost, citing CryptoQuant data, stated that 'Net Taker Volume' rose to approximately $145 million. This indicator is a key supply and demand metric that shows the difference between buy and sell orders, and if it maintains a positive (+) value as it does now, it means that buying pressure is dominating the market.

Indeed, this indicator has remained positive for nearly two months since March 7. In past patterns, Bitcoin prices have shown an upward reaction whenever there was a shift from strong selling dominance to buying dominance, suggesting that the current trend also supports the possibility of continued upward movement.

However, the $80,000 range still acts as a strong resistance level. As the ascent has been repeatedly capped at this price point in recent days, the possibility of increased short-term volatility is also being raised. Analysts believe that a trend reversal can only be confirmed after observing the price settle above this level for at least three days after a breakout.

Currently, Bitcoin is trading near the $78,000 level, continuing a consolidation phase with no significant fluctuations on a 24-hour basis. If buying pressure centered on the derivatives market is maintained, there is still room for further upside, but the key turning point will ultimately be whether it breaks $80,000.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*