Traders banking on Bitcoin’s continued surge as it crosses $56k
Bitcoin (BTC) has been experiencing a continuous surge in value over the past month and is now approaching its all-time high of $68,800, which was reached in November 2021. Traders, according to Santiment, are now placing bets on a further increase in the price of BTC.
As of the time of writing, BTC has risen by 9% in the past 24 hours and is currently trading at around $56,200. The market capitalization of this leading cryptocurrency has exceeded $1.1 trillion, with a market dominance of 51.9%.
On February 26, as Bitcoin gained bullish momentum, MicroStrategy, led by Michael Saylor, acquired an additional 3,000 BTC at an average price of $51,813, amounting to $155 million.
According to data from Santiment, Bitcoin’s total open interest (OI) has surged from $9.55 billion to $10.2 billion, a level that hasn’t been seen since July 2022.
Following the price rally, the number of trades that bet on a further increase in Bitcoin’s price has also surged. According to the market intelligence platform, the total funding rate for BTC on all exchanges has increased from 0.016% to 0.019%. This indicates that the number of trades with long positions has slightly increased.
Santiment also reports that the number of whale transactions, which consist of trades worth at least $100,000 worth of BTC, has increased from 9,067 to 13,142 unique trades in the past 24 hours. Typically, when there is a surge in whale activity, it is expected that there will be high price volatility.
Additionally, according to Santiment data, Bitcoin’s Relative Strength Index (RSI) has risen from 70 to 73 in the past day. This suggests that Bitcoin may be slightly overbought at its current price and a cooldown period could be expected. In order for BTC to maintain its bullish trend, its RSI would need to stay below the 60 mark.
In the past 12 months, Bitcoin has experienced an impressive rally of 140%.
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