Blofin Shares Bitcoin (BTC) Predictions for the Coming Week
Cryptocurrency analysis firm Blofin Academy has recently published a report forecasting the performance of Bitcoin (BTC) in the upcoming week. The report delves into several key factors that could impact the price movements of BTC.
The report kicks off by highlighting the rapid surge in bond yields following the market’s opening on July 1. This surge was attributed to the Federal Reserve’s use of Overnight Reverse Repurchase Agreements to withdraw liquidity from the market, as well as the sale of treasury bonds driving up yields.
Furthermore, the steep drop in the yen/dollar exchange rate prompted the Bank of Japan to counter Japanese government bond yields by selling US treasury bonds and purchasing Japanese government bonds.
According to the analytics company, these developments led to an increase in investors’ preference for risk-free assets, as evidenced by the broader macro asset allocation. The prices of safe-haven assets such as gold, silver, and DXY collectively rose, while the demand for gold from central banks worldwide continued to drive up gold prices.
The report also anticipates that the level of liquidity in the crypto market will remain low in the near future. As macro events approach, the butterfly index has slightly risen, but investors maintain a relatively optimistic outlook on potential systemic risks in the market.
The butterfly index measures the relative abundance of out-of-the-money (OTM) high-strike call options and low-strike put options by comparing out-of-the-money (ATM) volatility with crypto exchange Deribit’s bitcoin volatility index (DVOL). An increase in the index indicates a stronger demand for OTM options, reflecting investors’ fear of uncertainty or sensitivity to uncertainty.
However, the analysis company notes that the impact of market makers on price stability is diminishing. For BTC, a gamma peak around $63,000 poses strong upside resistance, while significant negative gamma on the downside indicates a lack of support levels. This suggests a high possibility of downside risk if any “unexpected” events occur.
It’s important to note that this information does not constitute investment advice. To trade in over 300 cryptocurrencies, you can sign up with the Binance exchange using this link for a 20% commission discount.
For exclusive news, analytics, and on-chain data, follow our Telegram and Twitter accounts now!
