Key Takeaways:
- Bitcoin price nears $69K, just 6.8% shy of its all-time high.
- Key technical levels indicate positive momentum in the market.
- Institutional interest is rising, with futures contracts hitting new highs.
Bitcoin has rallied to nearly $69,000, only 6.8% below its all-time high of $73k set in March. After seven months of stagnation and unpredictable price action, this uptick signals a fresh wave of momentum for the cryptocurrency market.
According to data from Glassnode, the recent resurgence in price, which broke some key levels, reignites investor optimism. The price action in the last few weeks closely resembles trends from the 2021 bull run for Bitcoin.
Added to this, the fact that certain breakthrough resistance points, such as the 200-day and 111-day moving averages, further cement the bullish outlook.
However, one of the most historical indicators, the 365-day simple moving average (SMA) of Bitcoin, continues to be a key indicator of always providing support during market inflection points.
On-Chain Data Shows Bitcoin Growing Liquidity
Net inflows into Bitcoin have significantly increased by over $21.8 billion in the last 30 days. For that reason, the Realized Cap has reached an ATH of $646 billion. The increase in supply means more liquidity is coming to the market, which will keep pushing the price higher and stabilize the uptrend of Bitcoin.
Next, the major on-chain metric, the AVIV Ratio, equally proved that active investors have been quite profitable. Although the ratio experienced some setbacks in the early part of this year, it has essentially held above its long-term average since then, which is indicative of market resilience.
Bitcoin has been trading between its ATH and the -23.6% Fibonacci level for several months, a really strange pattern that underlined the peculiarity of this sideways trading period.
Institutional Interest Ramps Up
The institutional activity in the Bitcoin futures market is at an all-time high. Institutional open interest in both perpetual and fixed-term contracts has surged to $32.9 billion, with CME Group leading the charge.
Their future contracts have scaled to $11.3 billion in open interest, which is the most active market at this point in time and indicative of increased institutional participation.
Interestingly, cash-and-carry strategies, in which traders lock in the difference between spot and futures markets for profit, have risen to as high as 9.6% and attracted more institutional traders.
However, if there is an expectation for cuts to Federal Reserve rates, this might even further give cause for traction toward such a strategy and further drive up liquidity in the Bitcoin market.
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