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Due to the lack of coordination among market participants, the upward momentum of BTC has not yet ended.

• BTC has entered the historical "shopping zone", indicating that a rebound is imminent.
• US investors have started buying BTC in this area, while derivatives traders are selling.

After the overall market selloff, BTC has not fully recovered.

The price of this event has fallen from $90,000 since November 15, and broke below that price on February 24, losing 17.47% in the past month.

According to the analysis of AMBCrypto, due to some sentiment being consistent with the bullish narrative, BTC may see a significant rebound.

However, given the current selling pressure in the derivatives market, the rebound may not materialize. The reasons are as follows.

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Bitcoin price hits new high as US investors rush to buy

Recent analysis by CryptoQuant shows that BTC has entered the areas on the chart known as the historical shopping zones 1 and 2.

To trade in this area, BTC's price needs to drop 15% to 20% - the same decline it has recently recorded.

As shown in the image, these levels are referred to as shopping zones, as two major activities have occurred: market participants' historical accumulation of BTC and investors taking advantage of the excessive reaction that caused the price decline.

At the time of writing, US investors in the market are taking advantage of this downtrend and starting to accumulate assets, as the Coinbase premium index has soared to -0.053, showing an upward trend.

Typically, when this index is in negative territory, it indicates that US investors are selling. However, when the asset trend is rising and is likely to break above 0, it suggests that buying sentiment is gradually increasing.

If this index breaks above 0, it could trigger another wave of BTC buying, as investors at this level believe the asset may rise based on its performance and other market sentiment.

The chart shows that BTC may be about to repeat the pattern of a sharp price surge after a significant decline in August, as highlighted by the orange circle. A similar decline is currently occurring.

Following this pattern, once the asset breaks above the purple resistance line, the bullish trend of BTC will be confirmed, and it may set a new all-time high.

Although on-chain activity and the chart suggest that BTC may rise, the short selling by derivatives traders may hinder the expected uptrend.

Derivatives traders short BTC

Confidence in the derivatives market is low, with financing rates declining and sell volumes increasing significantly, indicating these traders are hindering a significant BTC price movement.

The BTC financing rates across various crypto exchanges have dropped significantly since February 3, reading -0.01 as of the time of writing.

Negative funding rates mean that market sellers are paying a premium to maintain their positions, in the hope of further price declines.

By examining the taker buy/sell ratio to determine if buy or sell volumes are dominant, the analysis indicates that sellers are in control in the market, as their selling pressure outweighs buying pressure.

With key fundamental indicators turning bearish, BTC's uptrend may face a slight setback. However, if other key indicators turn bullish, the sellers in the derivatives market may face liquidation as the asset rises.