The price of Bitcoin (BTC) continues to trade below its 2023 high, indicating that investors may have underestimated the strength of the $44,000 resistance. However, this doesn’t mean that reaching $50,000 and beyond is no longer possible. Traders have remained optimistic despite a drop in price and liquidation of leveraged long Bitcoin futures. The impact of forceful liquidation orders has dissipated, disproving the notion of a crash solely driven by futures markets.

To determine if Bitcoin whales and market makers are still bullish, traders should examine Bitcoin futures premium, also known as the basis rate. Data reveals that the BTC futures premium remained above the neutral-to-bullish threshold throughout the recent price drop, indicating resilience. The options market also shows a balanced cost for both call and put options, suggesting a neutral sentiment among investors.

Retail traders using leverage have not significantly influenced the price action, as the funding rate for long positions has remained modest. The recent rally and subsequent correction appear to be primarily driven by the spot market, reducing the odds of cascading liquidations due to excessive optimism tied to the expectation of a spot exchange-traded fund (ETF) approval.

In conclusion, despite the price correction, derivatives indicate that positive momentum for Bitcoin hasn’t faded. This is good news for Bitcoin bulls, but it’s important to note that every investment and trading move involves risk, and readers should conduct their own research before making any decisions.