Bitcoin, the world’s oldest crypto, reached its highest point in almost
three months on Saturday before paring back some of the weekend’s gains.
Prices have since cooled and are down around 1.5% on a 24-hour
basis after reaching a top of $45,300 – their highest point since May 18. As of
press time, bitcoin is changing hands for around $43,430.
Datamish
data show bitcoin’s push to higher price highs (HH) and higher
price lows (HL) was precipitated by a short squeeze which saw 126 BTC short
positions liquidated on Friday.
“Perpetual funding rates have turned positive, meaning that the
derivatives market is clearly positioned to the long side,” Toby Chapple, head
of trading at digital asset firm Zerocap told CoinDesk via Telegram. “This
positioning is also supported by an expanding futures basis curve, showing that
market sentiment is gradually building.”
Significant outflows from exchanges have also been accelerating,
indicating a lack of short-term selling intent, according to the digital asset
firm. Despite market concerns around the proposed crypto tax reporting
provision in the U.S. infrastructure bill, institutional activity is once again
on the rise.
“This is reflected in the Grayscale premium reaching toward positive
territory, albeit slowly,” said Chapple.
Indeed, on-chain data also suggests further signs of bullish activity.
Wallet addresses with greater than 0.1 BTC are at their highest point in two months
and have continued to rise since July 28, up 3.19 million from June 14’s 3.14
million, Glassnode data show.
Whales, or large market participants holding between 100 and 10,000 BTC,
continue to build long-term positioning which “bodes well for the structure of
the market,” according to Zerocap.
Bitcoin’s HH and HL bullish charting pattern tells of the
risk-taking mood currently brewing in the market which has driven prices toward
the 200-day moving average – a significant marker of bullish activity when
prices are above and conversely bearish when below.
“The 200-day moving average at approximately $45,000 has provided some
resistance – a clean break here could lead to the next accelerated push
higher,” Chapple said.
Other notable cryptos in the top 20 by market capitalization are also
shedding some of the weekend gains with chainlink, polygon, and dogecoin having
sunk the lowest.
Meanwhile, the often touted cousin of bitcoin, gold’s spot price briefly plummeted to a low of $1,681 from around $1,760 on Sunday evening. Prices have continued to build and are sitting around $1,761 per troy ounce.
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