(6 votes)

Last Updated Date: 18 June 2021 @ 7:06 AM (UTC)
*Please note that all the dates are in GMT time zone

An unusual phenomenon called 'backwardation' is taking place in Bitcoin () futures trading, mainly the June contract, which expires on June 25. The fixed-month contracts usually trade at a slight premium, indicating that sellers request more money to withhold settlement longer. Futures should also trade at a 5% to 15% annualized premium on healthy markets, in line with the stablecoin lending rate. This situation is known as contango and is not exclusive to crypto markets.

Whenever this indicator fades or turns negative, this is an alarming red flag. This situation is known as backwardation and indicates a bearish sentiment.

The market shows short term peaking action, driving initial topping selloffs to test 34921 retracement support. A close under 34921 alerts for a larger top/downturn and projects selloffs to 31131. Only a close over 42027 rekindles bull trend forces.


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