Bitcoin hits new highs in the absence of ‘unhealthy’ leverage use — Will the rally continue?

The main dishes to remember:

• The Bitcoin ETF spot inputs and a low lever effect suggest that the BTC rally has room to develop.

• The liquidity of the American federal reserve and the support for low bonds a bitcoin bitcoin pushes beyond $ 110,000.

Bitcoin (BTC) was unable to maintain its bullish momentum after reaching a new summit of $ 109,827 on May 21, which led merchants to wonder if the derivative markets mainly led the rally. From a wide point of view, the $ 77 billion in Bitcoin’s open -end interests have undoubtedly played a role. However, a more in -depth examination of data shows a more positive perspective for new price gains.

The Bitcoin term premium of 7% of 7% is well in the neutral range of 5% to 10%, which has been typical for two weeks. This indicator can easily exceed 30% during periods of strong optimism, so the current level is relatively low. At the same time, the absence of excessive leverage reduces concerns concerning a rally trained mainly by derivatives.

Balanced control books and balanced Bitcoin ETF inputs point to a stains focused rally

By way of comparison, during the previous bitcoin, $ 109,346 of all time on January 20, the annualized term premium reached 15%, showing a much higher level of uphill lever effects affecting the price. Consequently, the current Bitcoin derivative market seems healthier, suggesting high demand on the punctual markets.

During the Bull Run of January, the Bitcoin price on Coinbase exchanged a bonus compared to other scholarships. This so -called Coinbase premium is not present now, which means that the purchase of pressure is widespread more uniformly – a sign of a healthier market.

Although excessive purchase pressure on a single exchange is not necessarily lower, it can facilitate the triggering of unusual price forms when the liquidity is low. These data support the idea that derivative markets were not the main engine of recent price increases.

In addition, the net inputs of $ 1.37 to identify the funds (ETF) negotiated in exchange for Bitcoin (ETF) in the United States between May 15 and May 20 also suggest that buyers, rather than derivative traders, were the main force behind the rally.

Despite the lack of conviction in the term contracts on Bitcoin, several indicators indicate more upwards. Forced liquidations for the term positions of BTC Bearish were relatively low at $ 170 million between May 18 and May 21, cementing the idea of ​​a stains focused. In comparison, the rally at $ 104,000 on May 9 sparked $ 538 million in liquidations over three days.

In relation: Is the price of bitcoin close to a cycle cycle? – 5 indicators that help traders to decide

On May 21, the Bitcoin options markets showed a slight increase in the demand for put options (sale), but nothing unusual. By way of comparison, the Deribit Put / Call report fell to 0.4x during the previous bull race on January 20, reflecting lower confidence due to reduced volumes in the call options (Purchase).

The ascending movement of Bitcoin may have been limited by macroeconomic factors, especially since the tariff war continues. However, the potential for the price to reach $ 110,000 and higher is partly based on the low position of the American federal reserve. Liquidity injection could facilitate recession problems, but it also reduces the attraction of state bonds, which promotes risk assets such as Bitcoin.

This article is for general information purposes and is not intended to be and must not be considered as legal or investment advice. The points of view, the thoughts and opinions expressed here are alone of the author and do not reflect or do not necessarily represent the views and opinions of Cointelegraph.