The six-week descending wedge pattern, which has been pushing up the price of cryptocurrencies for the past six weeks, is not something that bitcoin price bulls should bet against. Even though a shorter timeframe analysis yields a neutral result, two derivative metrics indicate that crypto bulls will find it difficult to reverse the downtrend. Concerns about the U.S. debt ceiling standoff are also raised because the Treasury is out of money. The USDC stablecoin’s creator, Circle, has switched out $8.7 billion in Treasuries with maturities longer than 30 days for short-term bonds and collateralized loans from major banks. The American holdings in MakerDAO’s portfolio have increased.
The balance of demand from longs and shorts was shown by the neutral seven-day funding rate for Bitcoin and Litecoin. For the past few weeks, the put-to-call ratio for Bitcoin options volume has been below 1.0, indicating a higher preference for call options that are neutral to bullish. The macroeconomic environment is uncertain, so there is no reason for bulls to bet in advance on a quick recovery of the cryptocurrency market. According to derivatives metrics, bears are in a good spot.
