Bitcoin is showing no weakness, and the bullish trend seems poised for an extension over the coming days. According to a
As of this writing, Bitcoin trades at $ 22,900 with sideways movement in the last 24 hours. Over the previous week, the BTC price records an 8%. Other cryptocurrencies in the top 10 by market cap are recording profits, moving with the benchmark crypto.
Per the report, Bitcoin climbed from its yearly low by squeezing over-leverage short positions. Their liquidation operated as fuel for the current rally allowing market makers to propel prices into previously lost territory.
In the past, when Bitcoin took out overleverage positions, the market weakened. Arcane Research noted the opposite, the cryptocurrency continues to show signs of strength with a rising 7-day average trading volume.
Conversely, this hints at a spike in speculative appetite in the market and short-term support for further appreciation. The Bitcoin trading volume for this period records an average of $ 1 billion per day in trading venues, except for Binance. The latter recorded $ 10 billion in trading volume over the past week.
According to the report:
The prevailing high trading volumes indicate that the speculative appetite has grown. While a structural short squeeze ignited the strength, it’s promising to see that the momentum is supported by persistent high spot volume.
In addition to the above, Arcane Research is optimistic about BTC’s short term due to a spike in institutional interest in the cryptocurrency. This increase is evident in the Chicago Mercantile Exchange (CME), as seen in the chart below.
On this platform, the Open Interest, the total positions for BTC derivatives experienced a 21% increase over the last 7 days. The report noted:
Positive tendencies toppled with the growing relevancy of CME is a promising observation in light of CME’s important role in BTC’s price discovery, and it suggests that institutional flows have contributed to the recent strength.