The recent increase in Bitcoin's price suggests a shift in investor behavior, according to CryptoQuant analyst known as "crypto sunmoon."
In his post on the CryptoQuant QuickTake platform, the analyst pointed out that the current Bitcoin bull market is being driven by leverage bets, particularly in derivative markets.
This trend is interesting because it differs from previous cycles, where BTC bull runs were more often accompanied by increased deposits on spot exchanges.
The Role of Leverage Bets in Bitcoin's Price Growth
Leverage bets use borrowed funds to amplify the size of an investment. For example, with 2x leverage, an investor can open a position twice the size of their capital.
In Bitcoin futures trading, this approach can be profitable during price increases, but it is also risky. If the market moves against expectations, traders may face significant losses, known as liquidations.
The analyst highlights that the inflow of Bitcoin into derivative exchanges shows growing confidence among investors, suggesting a belief in further price gains. This confidence can create a feedback loop, where rising prices encourage additional leverage bets, further supporting the bull market.
BTC Price Development and Future Outlook
Bitcoin's price has risen by 8.2% over the past week and is currently trading at $71,804. The role of leverage is becoming increasingly significant. BTC has seen a slight pullback from its recent 24-hour high of $73,562, but its upward momentum remains.
The steady price increase and capital inflow through leverage indicate investor optimism about Bitcoin's future potential. According to the analyst, if Bitcoin continues to flow into futures rather than spot exchanges, the bullish sentiment is likely to remain strong.
Leverage bets are just one of several factors signaling continued growth in Bitcoin's price.
Other Indicators Supporting Price Growth
The #stablecoin Supply Ratio Oscillator (SSRO) shows low levels not seen since 2022. The drop in this value suggests that more stablecoins are being converted into BTC, indicating growing demand for Bitcoin.
Meanwhile, technical analysis goes beyond a single metric. Renowned crypto analyst Ali recently highlighted that, historically, BTC has risen to the 1.618 and 2.272 Fibonacci retracement levels.
If #bitcoin☀️ follows this pattern again, Ali predicts that #BTC☀ could reach a price between $174,000 and $462,000.
#BitcoinPrice2024 , #cryptoanalysis
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