Bulls and bears show positive market dynamics

At first glance, the last few months of cryptocurrency seem to boast nothing but hacks, scandals and bankruptcies. But this is far from the case. The perpetual funding ratios of Ether and Bitcoin futures have turned positive again in a long time.

Such incidents can only speak to the bullish sentiment of traders. Also, as clarified, bitcoin is trading below its mining cost. This has only been characteristic of the lower end of the market.

Referring back to other sectors, DeFi made about -33% to quotations. On the other hand, cryptocurrency stocks returned more than minus 40% on average for the month.

One important indicator of market sentiment is also the volatility skew. The greater the amplitude of the skew, the greater the volatility, hence the small confidence level in the market. On 18 June, the skewness reached an all-time high of 36%, and since then, it has declined to 17%, which indicates a market recovery in the coming months.

Also, the large number of long positions in BTC and Ether points to a public belief in an imminent bull run. However, it has not traded below mining levels since March 2020 and is now doing so again. Such indicators point to global liquidations and the bottom of the bitcoin price.

Based on the information received at the moment, the bullrun won't be for a couple of months at the earliest. And bitcoin is severely undervalued and in fact is if not at the bottom, then very close to it.