For the fourth consecutive week, the price of Bitcoin has increased, and it is currently trading just below its 18-month peak of $38,000. At the time of writing, BTC was up 0.53% over the previous day to $37,019 in value.
A spot ETF approval is expected in the near future, which has led to a 40% increase in the price of bitcoin during the previous four weeks. With a price slightly around $38,000 on Thursday, Bitcoin reached its highest level since May 2022.
As of this now, Bitcoin is still only around halfway to regaining its peak of nearly $69,000 during the 2021 crypto mania.
At the moment, traders are targeting prices of $40,000 and above. As previously mentioned, renowned trader Peter Brandt said that if a pennant or flag pattern for Bitcoin verifies, its price goal would be $43,289.
According to IntoTheBlock, which reports that Bitcoin fees surged by 243% week over week as ordinals’ volumes reached a six-month high, there is also a growing demand for the Bitcoin network.
Demand from whales and institutions has also grown dramatically; in fact, the number of transactions over $100,000 in Bitcoin has climbed by 80%. $230 million worth of Bitcoin has been added to exchanges in the past week.
Perpetual swap funding rates might suggest caution
According to IntoTheBlock, perpetual swap financing rates for both ETH and BTC have risen to their highest point in more than a year.
Fees known as funding rates are what perpetual contract holders have to pay when their prices fluctuate from spot prices.
Excessive financing rates in either direction have traditionally indicated overextended markets, as seen by the FTX disaster last November.
The fact that bitcoin funding rates have reached annual highs might mean that the market is perhaps too eager to continue long.
Given that funding rates were high for several weeks at a time in 2021, this may not necessarily mean that prices will tumble very soon, but it may suggest exercising care.
