Many speakers on Crypto Twitter are sure that the ongoing Bitcoin (BTC) spike is too fast and would be erased very soon. However, at least two reliable indicators look amazing for bulls, CryptoQuant’s verified author says.
Bitcoin (BTC) upsurge might be continued, as OI and estimated leverage still at lows: Analyst
In his recent analysis highlighted by the team of CryptoQuant, a top-tier on-chain data provider, Dan Lim displays two indicators that are lagging behind the Bitcoin (BTC) price.
Crypto market in 2023
“Looking at the open interest and leverage ratio, they have fallen sharply since the FTX incident, and despite the recent strong rally in #Bitcointhese two indicators still haven’t overheated at all.”
— CryptoQuant.com (@cryptoquant_com) January 21, 2023
While the Bitcoin (BTC) price itself has already fully recovered from the phase of its collapse caused by the FTX/Alameda drama, both metrics are still near multi-month lows.
First, it is aggregated Open Interest, ie, the US Dollar-denominated value of all cryptocurrency open derivatives positions across verified trading platforms. This metric mirrors the activity on the derivatives market. Aggregated OI bottomed in mid-December and is only in the middle of pale recovery.
Then, the Estimated Leverage Ratio, an indicator of the leverage rates derivatives traders choose for their positions, bottomed last week and still fails to get back to December 2022 levels.
That’s why the most interesting developments in the midterm are yet to come for Bitcoin (BTC) bulls, Lim supposes:
It is necessary to have an active buying perspective if there is a strong drop of Bitcoin in the future or if it renews its low point
Meanwhile, Bitcoin’s (BTC) “Fear and Greed” index by Alternative jumped over 50/100 (“Neutral”) for the first time since early April 2022.
Bitcoin (BTC) spikes to levels unseen since mid-August
Today, Jan. 21, 2023, Bitcoin (BTC) briefly jumped to $23,330 on major spot exchange platforms. As such, it conquered levels unseen since August 19, 2022, and set new five-month highs.
In less than two months, Bitcoin (BTC) added almost 50%. However, it is still changing hands 66% below its all-time high registered on Nov. 10, 2021.
In the last 24 hours, the Bitcoin (BTC) price gained 8.8%. As per estimations of Coinglass (ex. Bybt), $385 million in derivatives positions were liquidated; “shorts” were responsible for 80% of them.
Credit : u.today