Bitcoin's recent gains have caused traders to fall to the bottom, but various measures remain bearish

Bitcoin’s recent gains have caused traders to fall to the bottom, but various measures remain bearish – Mail Bonus

On May 30, the total market value of cryptocurrencies increased by 4% and is now within reach of 1.3 trillion dollars market value. The move was enough to offset the loss from the last 7 days and was mainly driven by the 4.9% profit of Bitcoin (BTC) at that time.

Total market value of cryptocurrencies, billions of US dollars. Source: TradingView

Apart from Bitcoin, Cardano (ADA) was the only major cryptocurrency to close the week with a positive 4.5% performance. At the same time, Ether (ETH), Binance Coin (BNB), XRP (XRP) and Solana (SOL) failed to present weekly profits.

The Bitcoin turnaround came after the US stock market announced gains for the first time in 7 consecutive negative weeks. The longest loss in more than a decade for the S&P 500 was followed by a 6.6% positive performance at the closing bell on 22 May.

According to Yahoo! Finance, “a favorable set of quarterly results from major retailers helped, at least temporarily, allay concerns about how much inflation could take a profit.” For example, Macy’s (M) was up 29.1% this week, followed by Nordstrom (JWN) with 25.4% and Ross Stores (ROST) up 21.5%.

Interestingly, JP Morgan sent out a research report to customers on May 25, claiming that $ 38,000 was the fair value of Bitcoin. The International Investment Bank also said that the collapse of Terra (LUNA) did not hurt the demand for cryptocurrencies.

On May 23, at the World Economic Forum (WEF) in Davos, Switzerland, PayPal Vice President Richard Nash announced plans for the company to embrace all possible cryptocurrency and blockchain services. After opening its Bitcoin business across the United States in 2020, PayPal continues to expand its digital currency-related offering.

Below are the winners and losers of the last seven days. While leading cryptocurrencies showed modest movements, some medium-sized altcoins showed large fluctuations.

Weekly winners and losers among the top 80 coins. Source: Nomics

Synthetix (SNX) rose 15.8% after Kwenta, a zero-slippage derivatives trading program powered by Synthetix, reached $ 325 million.

Helium (HNT) rose by 15.2% after reform proposal # 51 was released on 27 May. The change introduces a framework for enabling subnets with your own ID and management.

STEPN Governance (GMT) lost 14.6% after shutting down users based in mainland China from their mobile app.

Terra Luna Classic (LUNC), formerly known as LUNA, dropped by 12.2% after the South Korean authorities called in all Terraform Labs employees as part of a comprehensive investigation.

Due to the mixed performance of altcoin markets, it is worth researching how traders are positioned according to trading and derivative indicators.

The tether premium shows a lack of retail demand

The OKX Tether (USDT) premium is a good measure of China’s retail demand in China. It measures the difference between Chinese P2P and the US dollar.

Excessive buying demand tends to push the indicator above fair value. On the other hand, in bearish markets, Tether’s market offer is flooded, resulting in a 4% or higher discount.

Tether (USDT) peer to USD / CNY. Source: OKX

Between May 23 and May 30, the Tether premium in CNY terms has been an average 2% discount, indicating a lack of retail demand. More importantly, the 4% increase in market value of cryptocurrencies on May 30 did not change investors’ attitudes.

Connected: Crypto’s youngest investors hold on to headwinds – and headlines

Derivatives are slightly bearish for altcoins

Perpetual contracts, also known as inverse swaps, have a built-in exchange rate that is usually charged every eight hours. Stock exchanges use this fee to avoid exchange rate risk imbalances.

A positive financing ratio indicates that longs (buyers) demand more indebtedness. However, the opposite is true when shorts (sellers) demand increased indebtedness, which causes the financing ratio to be negative.

Cumulative perpetual future financing rate May 30th. Source: Coinglass

Perpetual contracts reflect a mixed attitude, with Bitcoin and Ether maintaining only a positive (bullish) funding ratio, while altcoins indicated the opposite. For example, a negative 0.20% weekly rate of Solana equals 0.8% per month, which is irrelevant for most derivatives dealers.

The data suggest that investors are not in a hurry to confirm that the recent price improvement implies a change in policy. While the total market value of cryptocurrencies has exceeded $ 1.3 trillion in support, traders are pricing in a higher probability of a downturn. So far, there is no clear indication of a market bottom according to trade measurements.

The views and opinions expressed herein are theirs alone author and do not necessarily reflect the views of Cointelegraph. Every investment and business involves risk. You should do your own research when making a decision.