In the Bitcoin futures market, traders are scaling back on risk management strategies, hinting at a potential surge in prices.
With improving on-chain data, Bitcoin’s current momentum begs the question: Is a new price peak on the horizon?
Is Bitcoin’s computational power reflecting increased confidence?
Currently, the hash rate has climbed to 562B, marking a 0.61% uptick within the past 24 hours. The rising hash rate is significant as it often indicates miners’ optimism about Bitcoin’s future prospects.
When miners allocate more resources to secure the network, it typically signals stability or anticipation of an upward price trend.
Do these indicators suggest growing demand?
On-chain activities continue to show strength. Based on CryptoQuant data, the number of active addresses has reached 8.685 million, reflecting a 0.91% increase in the last day.
Similarly, the daily transaction count has surged by 1.29%, totaling 584,631K. This uptrend in network activity frequently foreshadows significant price movements. Increasing transaction volume indicates rising interest and involvement, potentially paving the way for a price rally.
Is Bitcoin undervalued according to the NVT ratio?
Examining the NVT ratio, currently at 22.549 (an 8.36% decline), Bitcoin might be considered undervalued.
The NVT ratio gauges the correlation between market cap and transaction volume. A lower ratio signifies heightened network activity compared to the price valuation.
This discrepancy could signal a strong possibility of an upward price push, especially when accompanied by positive on-chain patterns.
Could the surge in market interest trigger a price surge?
The open interest in Bitcoin futures has surged by 3.86%, reaching $35.38 billion. Moreover, with Bitcoin trading at $63,402.45, a 1.34% gain in the last 24 hours, the decline in risk management stands out.
Reducing protective positions often indicates expectations of reduced volatility and a potential price escalation. This market sentiment points towards the growing confidence in Bitcoin’s price trajectory.
Are new price highs on the horizon?
Backed by an increasing hash rate, robust on-chain activity, and a decreasing NVT ratio, Bitcoin seems primed for an upward trend.
The escalating market interest, coupled with dwindling risk management, strongly suggests that fresh price peaks could be imminent.