The Bitcoin derivatives market is showing signs of potential upside
Over the past two days, the Bitcoin (BTC) market has seen a significant increase in transfer volume, with a 153% increase in the number of transactions processed. This increase in activity has caught the attention of an analyst for CryptoQuant under the pseudonym “Onchain Edge.”
According to the analyst, an important market sentiment indicator is the bid-ask ratio, which measures the buying and selling activity in the Bitcoin derivatives market. Recently, the ratio has shifted significantly in favor of buying, indicating increased demand for Bitcoin derivatives and potentially signaling bullish sentiment in the market.
Bullish months ahead for Bitcoin?
According to Onchain Edge, these indicators suggest that the Bitcoin market could be heating up, with increased demand and activity, which could lead to short-term gains and send BTC into a newly formed bull run for the rest of the year to take by storm. last all-time high.
In addition to the taker-buyer-sell ratio, other metrics have shown significant changes in the Bitcoin market in recent days. One of these metrics is the total number of coins transferred.
This metric has shown a significant increase and indicates a high level of activity in the Bitcoin network. It could also mean renewed interest in Bitcoin, as investors and traders regain confidence in the largest cryptocurrency in the market during times of concern and deception involving the global financial crisis.
Onchain Edge highlights the increase in active wallets used to send and receive coins, which have increased by over 63% compared to previous days, another sign of increased interest in BTC and the market’s bullish sentiment.
BTC’s Accumulation Pattern Will Finally Break?
Over the past 20 days, BTC has shown a re-accumulation pattern, with each drop quickly bought with force and volume. This pattern suggests that the market may have gone through its final consolidation phase and a breakout could be threatening for Bitcoin.
According for trader and cryptoanalyst Jackis, this reaccumulation pattern indicates that the market is preparing for a breakout above $30,000 by the end of the week. Furthermore, for the analyst, the market now appears to have reached a point where “there is no more room left for further price declines,” and liquidity is building above current levels.
Jackis suggests that there may be significant buying pressure waiting to be unleashed, potentially leading to the long-awaited breakout above $30,000 and further consolidation above this level.
As of this writing, Bitcoin continues to consolidate at the $28,100 mark, well above the nearest support lines that have protected the price from falling below the 200-day and 50-day moving averages.
Overall, these changes in metrics and a further break of the re-accumulation pattern are positive signs for BTC in the short term, where a healthy pullback could happen over the next few days for a continuation of the rally. However, all indications are that the new bull market is in place and that Bitcoin will lead the rest of the crypto market to new heights in the coming months.
Featured image from Unsplash, chart from TradingView.com
