Bitcoin’s April Rally Driven by Futures Demand, Lacks Spot Support
- Bitcoin’s price surged from $66,000 to $79,000 in April, driven solely by perpetual futures demand.
- The Bitcoin Bull Score Index fell from a neutral score of 50 to a bearish score of 40 by the end of April.
- Spot demand remained negative throughout April, indicating speculative price gains without actual coin accumulation.
- The demand pattern is similar to the onset of the bear market in early 2022, raising concerns about potential price fragility.
- Following the rally peak, Bitcoin’s price slipped to $75,000 before stabilizing above $78,000 as of May.
April’s Bitcoin rally was marked by increased futures demand but lacked spot support, echoing patterns seen before previous market downturns. This dynamic suggests that without renewed spot buying interest, sustained price increases may be challenging.
Despite a significant price rise in April driven by futures activity, the lack of spot demand and declining Bull Score Index indicate potential vulnerabilities in Bitcoin’s market structure. (Source)
