Bitcoin and the aggregate cryptocurrency market are in another uptrend, with the bulls in full control of the market.
This uptrend follows an intense selloff from last night – the result of incredibly high funding rates on margin trading platforms.
The move lower reset those financing rates and cleared out „late longs“ – setting the stage for a move higher.
One analyst explained in a tweet that this rise came from a flood of OTC buying.
This is a bullish sign, as it suggests that big buyers are still buying Bitcoin Trader despite its relatively high prices.
Bitcoin and the aggregate cryptocurrency market are caught in the grips of another uptrend, with Bitcoin rising above $40,000 while the rest of the market follows close on its heels.
This intense upswing is simply an extension of the momentum BTC has seen in recent weeks and months – and comes as a combination of retail investor money and institutional capital pours into the markets.
One on-chain analyst comments that recent OTC activity has been on the verge of crossing the $40,000 mark and may indicate that another surge is imminent.
Bitcoin exceeds $40,000, continues uptrend
At the time of writing, Bitcoin (To Buy Bitcoin at Plus 500 Guide) is trading up just under 3% at its current price of $40,500, which is about where it has been trading all morning.
It briefly rose to as high as $42,000 before facing some selling pressure that hindered its growth and caused a retracement to $39,000.
It has since bounced off that low and is showing some immense signs of strength as the bulls try to push it back towards $41,000.
On-chain analyst: this is what triggered the recent surge in BTC
An on-chain analyst writes in a tweet that Bitcoin’s recent surge came just days after a massive surge in over-the-counter buying activity.
He notes that these investors are currently up 24% on their BTC investments.
„If we look at the recent Coinbase outflows, possibly OTC trades, I think we can appreciate their PNL. BTC is up 24% since January 2. If you were institutional investors, would you be happy with 24% PNL for bitcoin?“
Image courtesy of Ki Young Ju.
Whether these types of OTC trades continue to be strong as Bitcoin hits new all-time highs will provide insight into the sustainability of this movement.