Bitcoin [BTC] is back above $20,000, but this time there’s a noticeable lack of enthusiasm about it. Indeed, the cryptocurrency had bounced between $17,000 and $22,000.
The king’s coin has been mixed in the same range for the past few weeks. BTC whales played an important role in activating the range by buying near the low end and selling near the high end.
However, some recent sightings bolster the case for a potential near-term breakout despite a previously bleak outlook.
A comparison between the Bitcoin exchange whale ratio and BTC exchange reserves revealed an interesting picture. The latter had been falling since March while the former was gradually rising.
The whale exchange ratio notably hit higher lows since May. This confirmed that whale activity on the exchanges has seen an increase.
Such a result confirmed that larger amounts of BTC were being traded, paving the way for more volatile price swings.
The drop in foreign exchange reserves confirmed that Bitcoin had left the exchanges in the past few months. Investor sentiment also appears to have shifted in favor in recent days, particularly in the derivatives market. This was evident given the rise in open interest rates and funding rates in the derivatives market.
Open interest rates and funding rates in the derivatives market have increased significantly over the past two weeks. Current open interest levels were significantly higher than they were on September 12, which was the peak of the previous bullish attempt.
These observations were also consistent with the increased demand for BTC observed by whales and institutions.
BTC Incoming Demand: A Rise to the Stars?
The Purpose Bitcoin ETF holdings metric confirmed that the ETF has significantly reduced its balance over the past 30 days. These outflows stabilized in late September and the same metric indicated an accumulation over the past three days.
BTC addresses with a balance greater than 1,000 BTC metrics behaved almost similarly to the Purpose BTC ETF metric. This confirmed that the whales offloaded BTC in September and, more importantly, they started accumulating the coin in the last couple of days.
Unsurprisingly, the price of BTC has seen an overall rally since Sept. 22, around the same time that derivatives funding rates and open interest pivoted.
Bitcoin’s rise in the October 4 trading session hit $20,475 after interacting with its 50-day moving average.
Of particular interest is Bitcoin’s higher open interest on September 12. This could indicate more demand at the current price level compared to the previous high that the price had not yet reached, thus some form of divergence.
Additionally, these sightings occurred when the buildup by whales and institutions was beginning to recover from the lower beach. Bitcoin’s mining hashrate also continued to rise, acting in favor of current sentiments.
These results do not necessarily constitute confirmation of a price increase, but can be considered remarkable, especially if demand continues to grow. Bitcoin could finally sum up enough volume to break out of the current range, but that remains to be seen.
Bitcoin [BTC] is back above $20,000, but this time there’s a noticeable lack of enthusiasm about it. Indeed, the cryptocurrency had bounced between $17,000 and $22,000.
The king’s coin has been mixed in the same range for the past few weeks. BTC whales played an important role in activating the range by buying near the low end and selling near the high end.
However, some recent sightings bolster the case for a potential near-term breakout despite a previously bleak outlook.
A comparison between the Bitcoin exchange whale ratio and BTC exchange reserves revealed an interesting picture. The latter had been falling since March while the former was gradually rising.
The whale exchange ratio notably hit higher lows since May. This confirmed that whale activity on the exchanges has seen an increase.
Such a result confirmed that larger amounts of BTC were being traded, paving the way for more volatile price swings.
The drop in foreign exchange reserves confirmed that Bitcoin had left the exchanges in the past few months. Investor sentiment also appears to have shifted in favor in recent days, particularly in the derivatives market. This was evident given the rise in open interest rates and funding rates in the derivatives market.
Open interest rates and funding rates in the derivatives market have increased significantly over the past two weeks. Current open interest levels were significantly higher than they were on September 12, which was the peak of the previous bullish attempt.
These observations were also consistent with the increased demand for BTC observed by whales and institutions.
BTC Incoming Demand: A Rise to the Stars?
The Purpose Bitcoin ETF holdings metric confirmed that the ETF has significantly reduced its balance over the past 30 days. These outflows stabilized in late September and the same metric indicated an accumulation over the past three days.
BTC addresses with a balance greater than 1,000 BTC metrics behaved almost similarly to the Purpose BTC ETF metric. This confirmed that the whales offloaded BTC in September and, more importantly, they started accumulating the coin in the last couple of days.
Unsurprisingly, the price of BTC has seen an overall rally since Sept. 22, around the same time that derivatives funding rates and open interest pivoted.
Bitcoin’s rise in the October 4 trading session hit $20,475 after interacting with its 50-day moving average.
Of particular interest is Bitcoin’s higher open interest on September 12. This could indicate more demand at the current price level compared to the previous high that the price had not yet reached, thus some form of divergence.
Additionally, these sightings occurred when the buildup by whales and institutions was beginning to recover from the lower beach. Bitcoin’s mining hashrate also continued to rise, acting in favor of current sentiments.
These results do not necessarily constitute confirmation of a price increase, but can be considered remarkable, especially if demand continues to grow. Bitcoin could finally sum up enough volume to break out of the current range, but that remains to be seen.