First cryptocurrency’s rally might be far from over, according to analyst
The most recent unexpected bitcoin pump launched the first cryptocurrency back into the bullish range for the market, but it was not random and there were many signs indicating an upcoming surge. the same signals now project a Expansion Why rally?
Bitcoin futures market
The negative funding of open interest and Bitcoin futures backwardation were the two main reasons that caused such a volatile price spike of the first cryptocurrency. Both factors were showing how extremely oversold Bitcoin derivatives were.
Along with the presence of buying power, we saw a slight short squeeze, which led to a rise above $21,000 in just one day.
Coinbase orderbook test
Coinbase is one of the biggest Bitcoin trading platforms in the world and it usually reflects the intentions of retail traders around the industry. Recently, we saw a successful test of demand in the platform’s orderbook, according to Will Clemente.
With the order structure leaning towards bids, we can firmly say that the market is leaning towards recovery. The same goes for funding rates as bears used to pay bulls to open short orders.
Dominance reversal
In the last few months, the dominance of the first cryptocurrency on the market was gradually decreasing as investors have not seen any reasons to provide inflows to Bitcoin while Ethereum provides more intrinsic value than the digital gold.
But as soon as the update goes live in a few days and bitcoin hits the historical bottom of the range, it is most likely a signal of a dominance reversal that will either give us a BTC rally or a broad correction in the altcoin market .
At press time, Bitcoin is changing hands at $21,617 and not showing much volatility due to the weekend trading session.
