Having hit a low of $97,777.77, Bitcoin [BTC] saw a 4.73% surge, settling at $102,985 by the time of writing.
The recent upswing in Bitcoin’s price could be linked to retail traders who perceived the recent drop as a chance to buy back in.
CryptoCrypto investigated these retail activities in the derivative and spot markets to assess their potential influence on a Bitcoin bull run.
Sharp Rise in Derivative Accounts’ Optimism
In the last 24 hours, there has been a significant uptick in retail traders’ interest in the derivatives market, with a rise in bullish account positions.
Reportedly, Hyblock’s True Retail Longs Account indicated a jump from 49.88% to 62.08% in long positions on BTC within this timeframe.
When an increase in long positions follows a market correction, traders often interpret the current price as a discount, anticipating an asset rally.
BTC swiftly rebounded following this pattern, leading to its recent price gains.
Furthermore, CryptoCrypto discovered that while derivative traders were purchasing, spot traders were also engaging in bullish activities.
Reacquisition of BTC by Whales, but Caution Persists
Whales—major investors holding a significant volume of circulating BTC—reportedly bought a substantial amount of BTC as the price dipped below $100,000 in the last 24 hours, as per IntoTheBlock.
Data indicated that over 675,000 BTC valued at $67.82 billion were traded during this period, with whale purchases dominating sales and driving the price surge.
Likewise, BTC exchange netflow data demonstrated more outflows than inflows from exchanges.
A total of 322 BTC were transferred from exchanges to private wallets for prolonged retention, marking a 78.49% rise from the previous day’s exchange netflow.
Despite whale buybacks, a significant portion of this BTC remains on exchanges.
The Large Holder Netflow to Exchange Netflow ratio plummeted by 364.23% in the past week, indicating a possibility of profit-taking that could trigger another price decline.
Connection with Stock Market Trends
Research on CryptoQuant unveiled a growing correlation between BTC and the U.S. S&P 500, with both assets’ movements aligning, especially during the recent price correction.
This correlation coincides with a period of heightened institutional interest and adoption, hinting at a possible similarity in how investors perceive the assets.
This alignment could make BTC more responsive to U.S. economic developments, a factor investors should weigh before investing in the asset.