BTC Futures Activity Increase: Is the Bull Run Back on Track?
Wednesday saw a 3.6% increase in the price of Bitcoin, which, for the first time since June 12, reached $109,730. The recovery took place behind the global money supply (M2), which rose to a record high of more than $55 trillion. Bitcoin will confirm a powerful bullish engulfing pattern and raise the probability of new highs sooner rather than later if it finishes the daily candle above $108,500.
The huge increase in futures activity that accompanied Bitcoin’s latest price gain from $105,200 to $109,500 indicated renewed vigor. Major futures exchanges saw a 10% increase in open interest (OI), or about $3.2 billion, indicating a significant inflow of cash into the market. Long positions were the main driver of the increase, indicating optimism for more upside.
Bitcoin Price Strength Backed by Spot Buying and Stable Funding Rates
Funding rates stayed consistent across perpetual futures markets in spite of the price and OI increases. More significantly, it shows that excessive leverage did not drive the surge, indicating a balanced mood among long and short traders. Stable funding amid a price increase suggests that the uptrend may be more sustainable from a positive perspective.
The increase was accompanied by a major short squeeze, with almost $196 million in short positions liquidated in the last 12 hours. Bitcoin‘s advance past significant resistance levels was probably accelerated by this liquidation cascade.
The Bitcoin Coinbase Premium Index continued to rise during the shift, further confirming the buy-side strength. This measure, which monitors the price differential between Coinbase and other significant exchanges, supports the bullish argument by indicating steady spot buying pressure from institutional and retail investors in the US.
Bitcoin Clears Resistance Zone, ATH Within Reach
There is growing confidence among market observers that a new all-time high for Bitcoin is imminent after it decisively broke out of its recent sideways range. This Sunday’s record weekly closing above $109,300, according to trader Rekt Capital, may push Bitcoin above its last significant resistance zone, so opening the door for price discovery and further highs.
On the other hand, Titan of Crypto, a technical analyst, saw a confirmed bullish MACD crossover on the daily chart as a crucial momentum indicator. The expert went on to say that Bitcoin is trying to break out of a bullish flag pattern and that a successful push would probably set off a magnet effect that would push the price toward 137,000.
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