Bitcoin suddenly increased sharply
In 2 days, December 22 and 23, BTC increased to 6000 prices, equivalent to more than 10% of the price. This took place in the context of consecutive weeks BTC had a decline and investors were bewildered. The increase in BTC price somewhat eased the pressure on investors, reinforcing confidence in an uptrend market in the future. Let’s analyze this issue with Primexbttradingnow.
Bitcoin price increased more than 3,000 USD on the evening of December 23 and passed the important milestone of 50,000 USD early this morning.
According to CoinMarketCap data, on the morning of December 24, the Bitcoin price suddenly increased by more than 3%, surpassing the $50,000 threshold. After 10 days of decline, at one point falling below $45,000, the world’s number one cryptocurrency has finally regained momentum.
Even so, Bitcoin’s capitalization since the deep drop has yet to regain the $1 trillion mark. Bitcoin’s 24-hour trading volume maintained its average, growing 7.1% to $26.1 billion.
In general, the cryptocurrency market was in the green when a series of categories such as Ethereum, Cardano, Solana… grew by 5-10%. The group of 10 largest cryptocurrencies in the world continues to change with the return of XRP and “rookie” Terra. Over the past 7 days, XRP price has increased by 22.57%, while Terra is up 40.67%.
Some coins/tokens with impressive performance last quarter such as Polkadot, Dogecoin, Shiba Inu coin were pushed out of the top 10 and fell behind. This is also a sign that the trend of investing in animal coins is entering a new phase of decline.
Bitcoin is having an unhappy December. After reaching a historic peak, approaching the $70,000 mark in mid-November, the digital currency entered a period of strong correction and suddenly evaporated over 30% of its value from the beginning of this month. Observers believe that there are many factors that affect the price of Bitcoin. In addition to selling pressure, the fact that the US Federal Reserve (FED) plans to raise interest rates to ameliorate rising inflation is also a catalyst to suppress Bitcoin’s growth momentum.
Going against the observer’s prediction of reaching 100,000 USD/dong makes Bitcoin suffer a lot of negative effects. The market sentiment indicator Fear and Greed Index has continuously maintained at fear level. Recently, Jesse Powell, CEO of the Kraken exchange, thinks that the Bitcoin price can drop significantly in 2022. Even, it is not excluded that the Bitcoin price will drop below the threshold of $ 40,000 / VND this winter this winter.
Bullish Signals: Bitcoin Funding Rate Recovers YoY
Bitcoin funding rate hit a one-year low at the beginning of the month following the BTC crash. It has certainly regained some of its value but not without difficulty. Deposit rates have now started to recover again, signaling what could be the start of another bull run.
Funding rate withdrawal
Bitcoin’s funding rate has remained neutral since the December 4 crash that hit a one-year low. However, this has begun to change as funding rates have increased. It hit its highest point since the Dec. 6 plunge. While it’s still well below the average high, it suggests investor sentiment may be bucking the downside. BTC.
Much of the recovery came from funding rates on FTX and Deribit. These two platforms have contributed more than Binance and ByBit, whose funding rates continue to trend in neutral territory. Given the previous gains, it is expected that funding rates may really start to pick up on both Binance and ByBit exchanges as sentiment turns more bullish and investors start to find their way back. market.
Bitcoin opens up concerns about rise
Open interest in bitcoin has also waned during the December 4 crash but has tended to recover faster than funding rates. While deposit rates have remained mostly neutral, open interest in bitcoin has maintained an uptrend. It went from a total of 186,000 BTC on December 5 to 226,000 on December 20, as reported by Arcane Research.
Leverage is also increasing in the market as open interest increases. Binance has enjoyed most of this recovery as it has seen the most prominent growth in the weeks following the crash. Permanently margined Binance USDT has seen open interest increase from 40,000 BTC since the crash to the current 62,000 BTC on Dec.
Shorts have suffered the most from this growth as growing open interest in the perpetually margined stablecoin BTC has seen short orders liquidated within a short period of time.
Do you think BTC will continue to rally and break the previously established downtrend? Are you ready to trade BTC?
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