- Crypto traders and analysts look for bearish signals.
- An unusual movement called ‘backwardation’ takes place in BTC future trading.
- There is currently no sign for extra leverage from sellers.
Crypto traders and analysts look for bearish signals. This takes place after the June BTC futures trade below the spot exchange pricing. Notably, an unusual movement called ‘backwardation’ takes place in Bitcoin (BTC) future trading. However, it focuses mainly on the June contract that expires on June 25.
Moreover, at a slight premium the fixed-month contracts trades usually. This shows that sellers request more money to hold settlements for longer. More so, the Futures need to trade at a 5% to 15% annualized premium on healthy markets, in addition to the lending rate of stablecoin. Notably, this scenario is said to be contango and not excluded from crypto markets.
Whenever this indicator turns negative, this shows an alarming red flag. This situation is called backwardation and indicates a bearish sentiment.
This article was first published on coinquora.com