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Bitcoin, the world’s oldest crypto, peaked in nearly three months on Saturday before slashing some of the weekend’s gains.
Prices have since cooled and are down about 1.5% on a 24-hour basis after hitting a high of $ 45,300 – their highest level since May 18. At the time of publication, bitcoin is changing hands for around $ 43,430.
Data from Datamish shows that Bitcoin’s push towards higher prices (HH) and lower prices (HL) was precipitated by a short squeeze which saw the liquidation of 126 BTC short positions on Friday.
Related: Long & Short Crypto: How Do You Measure Relative Value in Crypto?
“Perpetual fund rates have turned positive, which means the derivatives market is clearly positioned on the long side,” Toby Chapple, head of trading at digital asset firm Zerocap, told CoinDesk via Telegram. “This positioning is also supported by an expanding base curve for futures, showing that market sentiment is gradually strengthening.”
Large stock market exits also accelerated, indicating a lack of short-term selling intent, according to the digital assets company. Despite market concerns about the crypto tax reporting provision proposed in the U.S. infrastructure bill, institutional activity is on the rise again.
“This is reflected in the grayscale premium which is reaching positive territory, albeit slowly,” Chapple said.
Indeed, on-chain data suggests other signs of bullish activity as well. Wallet addresses with more than 0.1 BTC are at their highest level in two months and have continued to rise since July 28, up 3.19 million from 3.14 million on June 14, according to Glassnode data.
Related: Market wrap: Bitcoin rallies above $ 42,000 as bull market continues
Whales, or the big market players holding between 100 and 10,000 BTC, continue to build a long-term positioning that “bodes well for the structure of the market,” according to Zerocap.
Bitcoin’s bullish HH and HL chart pattern recounts the risk-taking mood currently brewing in the market that has pushed prices towards the 200-day moving average – an important marker of bullish activity when prices are above and conversely bearish when they are lower.
“The 200-day moving average at around $ 45,000 provided some resistance – a sharp breakout here could lead to the next accelerated upside push,” Chapple said.
Other notable cryptos in the top 20 by market cap are also losing some of the weekend’s gains, with chain link, polygon and dogecoin falling to their lowest.
Meanwhile, bitcoin’s oft-touted cousin, the spot price of gold briefly dropped to a low of $ 1,681, from around $ 1,760 on Sunday night. Prices have continued to rise and are around $ 1,761 per troy ounce.
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