Bitcoin (BTC) price continues to trade below its 2023 high, indicating that investors may have underestimated the strength of the $44,000 resistance. However, this doesn’t mean that reaching $50,000 and beyond is no longer possible. In fact, it is more likely to occur. Bitcoin derivatives metrics show that traders remained optimistic despite a 6.9% drop. The $127 million liquidation of leveraged long Bitcoin futures on Dec. 11 triggered a 7% correction in less than 20 minutes. While derivatives markets played a role in the short-term crash, the impact of forceful liquidation orders had dissipated. The Bitcoin futures premium remained above the neutral-to-bullish threshold throughout the price drop, indicating that Bitcoin whales and market makers are still bullish. The options markets also show a balanced cost for both call and put options, indicating resilience after the correction. Retail traders using leverage also did not drive the rally or subsequent liquidations. The recent price movement appears to be primarily driven by the spot market, reducing the chances of cascading liquidations due to excessive optimism tied to a spot ETF approval. Overall, derivatives indicate that positive momentum for Bitcoin hasn’t faded despite the correction.
Bitcoin derivative data suggests traders are aiming for a $50,000 BTC price objective.