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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report
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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report

As Bitcoin Breaks $50k, Indicators Look Similar To The Rally That Lead To ATH

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 1:57 pm
3 mins read
Bitcoin Bull

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As Bitcoin finally breaks $50k, on-chain data shows BTC indicators look similar to the rally that lead to the ATH earlier in the year.

Bitcoin Indicators May Suggest A Repeat Of The ATH Rally From Earlier In 2021

As pointed out by a CryptoQuant post, the derivative exchanges’ reserve has been going down, while the funding rate has been turning slightly positive.

This means these indicators are now gradually recovering from the May crash, and the trends at the moment look similar to the pre-bull run buildup.

The derivatives exchanges‘ reserve is an indicator that shows the total amount of Bitcoin present in derivative exchange wallets.

These derivatives platforms are different from spot exchanges in that they offer services like futures contract trading.

Related Reading | South African Man Loses $900,000 Worth Of Bitcoin After Accidentally Deleting Keys

An increase in the value of this metric implies more investors are sending their BTC to these exchanges for selling purposes. In such a case, there may be a selling pressure present in the market. Similarly, a positive value might mean there is a buying pressure in the market.

Here is the latest chart for the Bitcoin derivative exchanges’ reserve:

The value of the indicator seems to be heading downwards

As the above graph shows, the indicator’s value has been slowly moving on a downtrend as it recovers to values seen before the May crash.

The chart also highlights that this downtrend right now looks to be similar to the one seen before the start of the bull run.

Related Reading | Crypto Market Goes Into “Extreme Greed,” What This Means For Bitcoin

The other important indicator here is the Bitcoin funding rate. This metric shows the fees derivatives traders need to pay in order to keep their positions open. The below chart will reveal its current trend:

The funding rate has started to turn slightly positive

This indicator’s curve also looks to be similar to the trend seen during the period leading up to the 2021 bull run.

A positive funding rate like right now means long traders have to pay a premium to keep their positions, implying a bullish sentiment among the market.

BTC Price

At the time of writing, Bitcoin’s price floats around $50.2k, up 8% in the last 7 days. Over the past month, the value of the cryptocurrency has increased by 48%.

Below is a chart showing the trend in the price of the coin over the past three months:

Bitcoin Price Chart

Bitcoin finally breaks $50k | Source: BTCUSD on TradingView

It’s unclear at the moment whether BTC can keep the momentum up, but if the above indicators are to be believed, signs seem to be bullish for the cryptocurrency.

Featured image from Unsplash.com, charts from CryptoQuant, TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

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