The past few days have given off even more indicators that bullish attitudes have returned to the bitcoin and wider crypto market. Buckle your seatbelts, we could be in for a long ride.
Bitcoin Futures Market Are Lighting Up
Bitcoin (BTC) briefly broke through the $9,200 support, spending about a day above $9,100. But the move downward turned out to be a brief blip on the radar as Bitcoin roared again above $9,600.
At this price, Bitcoin is taking a breather, but there are signs the overall expectations point to higher prices. The $10,000 tier beckons again, and overall optimism has lifted the Bitcoin fear and greed index into “greed” territory for the first time in months.
Even the Tesla (TSLA) rally to above $900 boosted the optimism on the crypto markets, affecting both BTC and the most liquid and widely traded altcoins. But the futures markets point to specific markets suggesting BTC may be preparing for more bullish moves.
The Bakkt trading platform livened up again, with another record in open interest, as BTC enters a more interesting price trajectory. Bakkt activity was cautious in January, despite the gains made by BTC.
Bakkt's BTC Futures Open Interest reaches a new all-time high. pic.twitter.com/9ve3pdqCtT
— skew (@skewdotcom) February 6, 2020
But the biggest hub of activity remains the BitMEX futures, which still invite the multitude of traders. The critical price levels for Bitcoin can translate into dramatic short-term moves, as well as a battle of positions to test the real strength of bullish attitudes.
Over a billion in open interest on Bitmex $XBTUSD at such a critical level – I expect fireworks soon! 💥
— Julien Thevenard (@JulienThevenard) February 5, 2020
The CME futures gap, which shows a trade $200 above current prices, may also move the markets in the short term. Gaps tend to be filled by crypto markets, and are used as an indicator of potential market moves. With this in mind, it’s likely that we’ll see Bitcoin break higher soon.
CME futures showing about $200 higher than spot
Spot should go up 🚀 pic.twitter.com/W0JDs927JF
— Satoshi Flipper (@SatoshiFlipper) February 5, 2020
Bitcoin Has Broken Above The 200MA
According to a renowned stock trader and crypto analyst, Thomas Lee of Head of Fundstrat Global Advisors, Bitcoin has recently surpassed back over its 200-day moving average.
This is an incredibly strong indicator that tells us that the crypto markets are primed to pump once again. Last time Bitcoin broke above the 200-day MA, it rallied almost 100% from $7,200 to $13,880.
— Thomas Lee (@fundstrat) January 29, 2020
Network Activity, Mining, Signal Growing Engagement
On-chain transactions are also rising, and during the latest rally above $9,600 reached a three-month peak. In the past day, the Bitcoin blockchain carried more than 346,000 transactions.
Usually, a high transaction rate will signal heightened trading activity and overall bullish attitudes. Exchange flows also signal a move to exchanges, with more coins moved to BitMEX in the past days.
🚨 24h BTC on-chain flows:#binance $66.9M in | $65.6M out #bitstamp $24.0M in | $22.0M out #bitmex $12.3M in | $6.5M out #bitfinex $6.7M in | $8.4M out#huobi $51.9M in | $44.5M out #kraken $40.8M in | $37.7M out #okex $33.5M in | $32.3M out
— TokenAnalyst (@thetokenanalyst) February 5, 2020
The current Bitcoin performance coincides with altcoin rallies, but the leading coin has its own bullish path envisioned if the $9,600 level remains a launchpad for five-digit prices.
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