Traders are showing a renewed sense of hope after Bitcoin (BTC) price held onto the $32,000 range for what could be the second day in a row.
CME futures see a bullish surge
According to a recent report from Delphi Digital, an aggressive reversal was observed in the CME futures basis on July 21, and this is a bullish sign for BTC traders who scooped up ‘cheap’ futures contracts. The resulting contango is interpreted as bullish because the futures price is above the spot price of the asset.
Multiple zones of resistance remain in Bitcoin’s path
Bitcoin’s recovery above $32,000 reignited the bullish optimism for many traders but the road ahead is by no means a walk in the park due to the multiple zones of resistance that lay overhead. According to pseudonymous crypto Twitter analyst Rekt Capital, many of the previous support levels for Bitcoin, including $35,000 and $37,000, could soon act as resistance.
Exchange inflows historically spike near market bottoms
Another sign of bullishness came from pseudonymous Twitter user IzzyEibani, who highlighted the recent spike in exchange inflows as a possible sign that the bottom is in. A closer look at the chart shows that there have been three instances in the past on Aug. 1, 2017, Nov. 30, 2018 and March 12, 2020, where inflows to exchanges spiked in a manner similar to what was seen on July 16. Each time the market bottomed within a short time period following the inflows.