According to analysts from Phi Deltalytics, a cheerful bitcoin price rally over $ 11,000 is unlikely to continue in the short term.
Bitcoin CME positions are falling
According to the crypto-focused investment advisory portal, BTC / USD is overvalued by over $ 11,000. The reason given is a decline in net bitcoin futures positions on the Chicago Mercantile Exchange (CME) in the past week. Phi comments: The slump shows that institutional investors are bearish in the short term.
Excerpts: “A correction is needed in the short term as institutional traders on the CME remain bearish and the drop in net positions last week indicates an overvalued 11k price in the short term.”
Favorable macro outlook
Despite the risk of falling below $ 11,000, Bitcoin could rise above $ 11,000 again due to favorable macroeconomic fundamentals. Phi has involuntarily pointed out the possibility of a correction of the S&P 500 downwards. With Bitcoin tracking the US benchmark too closely from their respective lows reached in mid-March, the cryptocurrency risked a decline should the Wall Street Index break next. Nevertheless, despite the weaker economic outlook, the S&P 500 was able to maintain its positive returns until 2020. Phi comments that investors have almost forgotten about the weak financial data due to the rising number of COVID cases in the US.