Unlike previous market gatherings, Bitcoin (BTC)’s latest rebound pushes from its potential cycle of $74,508 on April 6 to just over $100,000 at the time of writing – featuring a healthier price movement.
The current Bitcoin Rally shows no signs of overheating
According to a recent encrypted QuickTakes post by contributor Avocado_Onchain, last year’s BTC Bull Cycle saw major cryptocurrencies create and destroy multiple all-time highs (ATHs) — accompanied by a rapid spike in the amount of purchases and funding rates in the Binance market.
In particular, a sudden rise in funding rates followed by a sudden price pull due to overheating. In this context, overheating refers to excessive bullish leverage in the futures market that drives the costs of long positions, indicating excessively aggressive sentiment that often precedes a market correction.
The following chart shows these fixes that are triggered by excessive leverage of BTC futures. Specifically, boxes 1 and 2 show a sharp rise in Binance funding rate initially with price increases and then a longer correction period.
However, the current gatherings look different. According to Avocado_onchain, Bitcoin’s continuous rebound occurs without overheated funding rates. In fact, Binance Market purchases are downwards, as shown in Box 3 on the chart, in contrast to the previous Bull Cycle.
Analysts argue that these are signs of healthier gatherings. This has been marked by overheated funding rates and sudden revisions in previous Bull Run, which weakened investors’ sentiment. In contrast, current gatherings maintain a relatively stable funding rate, suggesting more cautious and sustainable market behavior.
Despite short-term price fluctuations, market purchase volumes have shown a steady upward trend since 2023, as marked by the yellow arrows on the chart. Analyst notes:
This suggests that buying emotions has more benefits, suggesting that there is no time to consider an exit yet. While it is not possible to accurately predict when Bitcoin will break its previous highs, current chains and market data signals remain very constructive.
Other indicators point to the new ATH
In addition to encouraging stable funding rates and market purchases, BTC shows several others Positive signs It refers to the new ATH of flagship digital assets in the near future.
For example, on-chain data shows that long-term holders are Not for saleBTC is trading near the previous ATH’s $108,786 recorded in January. This behavior suggests that these investors will further predict upside down.
That said, analysts warn against overly optimistic expectations, pointing out that Bitcoin may still be available far From experiencing a true supply shock. At the time of pressing, BTC is trading at $102,393, a 1.4% decrease in the last 24 hours.
Featured images from Unsplash, Cryptoquant and TradingView.com charts
