U.S. Economic Data to Determine Short-Term Bitcoin Price Movement

• Gustavo Faria thinks that a local bottom has emerged on the Bitcoin price.
• Bitcoin underwent a correction of approximately 15% in the past three weeks.
• OI figures indicate a greater balance between buyers and sellers.

Bitcoin may have found a local price floor, according to Gustavo Faria, co-founder of analytics firm Nosy. Faria’s analysis cites key on-chain and market indicators suggesting a potential turning point for the leading cryptocurrency.

In a recent analysis, Gustavo Faria observed that Bitcoin has experienced a 15% correction over the past three weeks, falling from the $70,000 range to the $60,000 range.

Meanwhile, the financial expert observed a crucial development in the futures market, with open interest declining by about $3 billion in the past three weeks, primarily due to long liquidations. Faria identified a development that indicates a more balanced dynamic between buyers and sellers. He noticed that funding rates for perpetual contracts have dropped to near zero, resulting in a healthier and less overly optimistic price structure.

Faria’s analysis also covered Short-Term Holders (STHs), whose realized price he indicated was $62,600. …

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