Bitcoin trades above $63,000 but the futures weekly funding rate shows pro traders are cautious.
Bitcoin (BTC) price surged 9.7% from July 13 to July 15, pushing it to around $63,500. This rally managed to reverse the losses from the previous nine days, yet the $65,000 resistance level remained unbroken for four consecutive weeks. Some traders attribute this recovery to speculation that China may lift its long-standing ban on Bitcoin. However, no official statement from the Chinese government has confirmed such rumors.
Despite the positive outlook, which includes a leading US presidential candidate expressing support for Bitcoin, BTC derivatives do not reflect the same enthusiasm. Market participants are now wondering if there is sufficient demand to break the $65,000 barrier and whether the weekend gains can be sustained.
Analysts have firmly denied the rumors, stating that China is unlikely to allow its citizens to freely trade Bitcoin using the local Renminbi currency. Mikko Ohtamaa, the co-founder of algorithmic investment protocol Trading Strategy, emphasized that a significant shift in China's stance on Bitcoin would conflict with the government's political agenda to curb "capital flight". Additionally, experts note that Chinese investors are currently prohibited from investing in spot Bitcoin and Ethereum exchange-traded funds (ETFs) in Hong Kong, despite its close ties with mainland China.
