Data from CryptoQuant indicates that Bitcoin may be on the cusp of a bullish trend reversal as a significant market signal begins to shift.
In a post dated April 13, CryptoQuant contributor Joao Wedson highlighted that the disparity between Bitcoin’s (BTC) futures price and its spot price on Binance is beginning to close. This disparity, referred to as the perpetual-spot gap, reflects the difference between the prices traders are paying in futures contracts compared to the actual Bitcoin price.
As the gap currently stands at a negative value, participants in the futures market could be exercising prudence or taking profits following Bitcoin’s earlier climb to nearly $90,000. However, the decreasing gap may suggest that selling pressure is diminishing. Historically, Bitcoin’s price has frequently seen a substantial rise when this gap shifted to positive, as seen in 2020 and early 2024.
Despite Bitcoin experiencing a drop of over 22% from its all-time high of $108,786 in January, on-chain accumulation indicators remain robust. According to an April 11 post on X by Glassnode, approximately 40,000 BTC has been purchased around the $79,000 mark, while about 51,000 BTC was accumulated at approximately $82,080. Should prices fall again, these levels may act as support.
As of this writing, Bitcoin is trading at approximately $84,746, having rebounded from a weekly low of $74,773. The cryptocurrency has gained 7% over the past week. Recently, Bitcoin closed a daily candle above a long-term downtrend line, prompting well-known market analyst Rekt Capital to speculate that a breakout could be on the horizon. However, they cautioned that a successful retest is necessary to validate the trend change.
In the meantime, Bitcoin’s dominance, which reflects its percentage of the entire cryptocurrency market, stands at 63%, according to TradingView data. This suggests that a significant amount of market capital is still invested in Bitcoin, implying that investors are relying on its relative stability amid market volatility. Should buyers continue to step in and the futures gap shifts to positive, analysts believe Bitcoin could be ready for another rally.
