As the cryptocurrency market maintains its bullish strength, many Bitcoin main indicators It has shown a strong and optimistic trend in recent weeks, which could have a positive impact on the price and suggests that the outlook for BTC in the coming days is promising.
Significant growth in Bitcoin futures premium
BitcoinThe forward annualized premium of , a key indicator that often sends bullish signals, has risen significantly over the past few weeks. James Van Straten, a cryptocurrency enthusiast and analyst, said: shared Positive developments on the X (formerly Twitter) platform have caught the attention of the crypto community.
It is worth noting that the rise in this important indicator is in light of rising market trends, indicating a change in sentiment and increasing investor confidence in future price performance in the short and long term. Masu. Also, this spike in the indicator often indicates an increase in demand that traders expect to see further increase.
According to experts, the annualized amount of purchased insurance premiums in the past month is Spot Bitcoin Exchange Traded Fund (ETF) Additionally, short interest growth in Chicago Mercantile Exchange (CME) futures nearly doubled, from about 6% to 11%.
James Van Straten further argued that in addition to the Fed cutting rates further in the next three months, this increase is more than double the current Fed funds effective rate of 5%. are. “The use of 'basis trading' will continue to increase,” he added.
Analyst too pointed out He expressed contradiction as to whether “basis trading” is being used more or less in response to the rise in Bitcoin futures open interest (OI).
In the past 24 hours, Bitcoin futures open interest has seen a sharp increase of 20,000 BTC. Van Straten said this growth is the largest Rapid increase in open interest Since June of this year, the net amount of non-commercial short positions has skyrocketed.
However, the Bitcoin Spot ETF saw total inflows of $2.7 billion, and its recent acquisition from Emory University in the US supports an upward long bias of about $15 million, while CME open interest is at an all-time high in 2018. The value has decreased by more than 6% since. Mid-October. In any case, Van Straten argues that directional long positioning simply increases liquidity, if not now, then later.
BTC is poised to retest all-time highs soon
Bitcoin continues to show a promising upward trend, and there is widespread optimism in the market. Approaching all-time highs The price set in March was $73,000. Considering the strong investor sentiment towards the crypto asset, it is possible that BTC reaches this important level within the next few days.
As of this writing, Bitcoin is trading at $72,412, just inches away from its all-time high, representing an increase of nearly 2% over the past day. There are several important upcoming events, including: american presidential election It is believed that the price will rise further and BTC may set a new high soon.
Featured image from Unsplash, chart from Tradingview.com
