Bitcoin May Be Nearing a Bullish Reversal as Futures Market Signal Shifts

Bitcoin May Be Nearing a Bullish Reversal as Futures Market Signal Shifts

On-chain data from CryptoQuant is pointing to a potential bullish reversal for Bitcoin, as a key market indicator begins to show signs of change.

In an April 13 post, CryptoQuant analyst Joao Wedson highlighted that the gap between Bitcoin’s perpetual futures price and its spot price on Binance is narrowing. Known as the perpetual-spot gap, this metric reflects the difference between futures contract pricing and Bitcoin’s actual market price.

Currently, the gap is in negative territory, indicating that futures traders might be acting cautiously or taking profits after BTC’s surge toward $90,000. However, the shrinking gap could be a sign that selling pressure is subsiding. Historically, when this gap flips positive, Bitcoin’s price has tended to rally—such patterns were observed in 2020 and earlier in 2024.

Although BTC has dropped over 22% from its all-time high of $108,786 in January, on-chain accumulation remains strong. According to an April 11 update from Glassnode on X (formerly Twitter), approximately 40,000 BTC were bought near the $79,000 mark, while another 51,000 BTC were accumulated around $82,080. These levels may now act as support if the price dips again.

At the time of writing, Bitcoin is trading at approximately $84,746, rebounding from a weekly low of $74,773. The cryptocurrency has gained 7% in the past week. Additionally, Bitcoin has recently closed a daily candle above a long-term descending trendline, prompting well-known analyst Rekt Capital to suggest a breakout may be underway—though they emphasized the importance of a successful retest to confirm the trend shift.

Meanwhile, Bitcoin’s market dominance stands at 63%, according to TradingView. This metric suggests that investors continue to lean on BTC for stability amid broader market volatility. Should buying momentum continue and the futures gap shift into positive territory, many analysts believe Bitcoin could be gearing up for another significant rally.