Expert: Bitcoin Price Eyes ‘the Next Leg Up,’ but Not Without Pain

Impact Overview

The uneven path to Bitcoin's recovery suggests increased volatility, potentially impacting funding rates on perpetual swaps.

Key Points

• Expect fluctuating funding rates due to price swings.
• Arbitrage opportunities may arise from discrepancies between spot and futures prices.
• Increased volatility increases the risk of delta hedging.

Recommendation

Monitor funding rates closely and adjust delta-neutral positions accordingly.

Market Analysis

Bitcoin's attempted recovery faces resistance, suggesting a cautious approach is warranted. The market sentiment remains fragile, and further downside risks exist.

Trading Considerations

• Monitor key support and resistance levels for potential breakouts or breakdowns.
• Utilize stop-loss orders to manage risk effectively.
• Be prepared for sudden market fluctuations.

Risk Factors

• Unexpected negative news or regulatory changes.
• Potential for further price corrections.

Outlook

Expect continued volatility with a potential for slow, choppy upward movement.