#BitcoinBounceBack #BitcoinBounceBack

Bitcoin is positioned to recover to $90,000, according to derivatives metrics

Bitcoin derivatives show no tension, supporting resistance despite $920 million in long liquidations putting BTC price on track towards the $90,000 level in the coming weeks.

Bitcoin BTC77,299 € failed to maintain levels above $85,000 on March 14, despite a 1.9% gain in the S&P 500 index. More importantly, it has been over a week since Bitcoin last traded at $90,000, leading traders to question whether the bull market has truly ended and how long the selling pressure will persist.

The Bitcoin basis rate is recovering from bearish levels.

From a derivatives perspective, Bitcoin metrics have shown resilience despite a 30% drop from its all-time high of $109,354 on January 20. The Bitcoin basis rate, which measures the premium of monthly contracts over spot markets, has recovered to healthy levels after briefly indicating bearish sentiment on March 13.

Traders generally demand an annualized premium of 5% to 10% to compensate for longer liquidation periods. A basis rate below this threshold signals weak demand from leveraged buyers. While the current rate of 5% is lower than the 8% recorded two weeks ago, it remains within neutral territory.

Central banks will eventually drive BTC price.

Bitcoin's price action has closely followed the S&P 500, suggesting that the factors driving investors' risk aversion may not be directly related to the leading cryptocurrency.

However, this also challenges the idea of Bitcoin as an uncorrelated asset, as its price behavior has aligned more closely with traditional markets, at least in the short term.