$BTC has struggled to reclaim $90k, but fundamental data paint an eerily similar picture to June 2021 the month before the market made it historic rally to new high.
š¹ There is a clear divergence between Spot and Future.
Spot Weakness: Spot trading volume on major exchange are declining Binance lost $40 billion in volume in November. Spot volume peak are getting lower as the cycle progresses.
Futures Dominance: Derivatives trading, on the other hand, remain active. The Spot/Future ratio is now just 0.23, suggesting the market is dominated by leverage.
šø The Supply in Profit Market Bands indicator has plunged from the bullish zone to below the liquidity accumulation zone.
This structure exactly replicate the indicator crash in June 2021. History show that after that crash, BTC recovered strongly and set a new ATH before entering a real Bear Market.
š¹ Market sentiment is sinking in Fear. The combination of low Spot Volume Extreme Fear is often a textbook sign of a Local Bottom. The recent increase in Miner Reserves also reinforces this argument.
However, to maintain the bullish momentum and confirm the 2021 repeat scenario, BTC must break the $94k resistance in the next test.
Do you think this Supply in Profit indicator crash is a launch pad for a new peak or the final trap before entering a Bear Market?
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