The world’s largest cryptocurrency, Bitcoin, has already reached its peak over the last three months- implying that it has started cooling down. As a result, the price of the BTC has cooled down quite a lot and is currently down by around 15% over the last 24-hours after it reached its high of $45,300.
Currently, the cryptocurrency is moving at a pace of $43,430. According to data presented by Datamish, the push by this cryptocurrency to higher price highs, as well as higher price lows has been precipitated by a period of short squeeze which saw around 126 BTC short positions being liquidated last Friday.
Bitcoin Has Positioned Itself For The Long Run
Toby Chapple, the head of trading at Zerocap, has stated that the perpetual rates of funding have finally transformed into positive, which implies that the market of derivatives has found itself positioned for the long run. This positioning by the market with respect to Bitcoin has also been supported by an expanding curve for futures basis- which shows that the sentiment of the market is currently building at a gradual level.
There have been accelerated changes made to the significant outlaws from the exchanges- which imply a severe lack of short-term selling intent- according to the digital firm. Now, despite several concerns from the market around the crypto tax reporting provision in the US infrastructure bill, the activity in the sector is at an all-time high.
Chapple mentioned that this was heavily reflected in the Grayscale premium which reaches towards positive territory. In fact, on-chain data has also represented further signs of this bullish activity. The addresses of the wallet with greater than 0.1 token Bitcoin have been at their highest stage over the last two months.
The bullish charting pattern of the HH and HL of Bitcoin does inform one of the risk-taking moods that have been currently perforating the market. This has directly led to an increase in prices toward the 200-day moving average.