Key Points
- The number of bullish derivative accounts on Bitcoin (BTC) saw a significant increase in the last 24 hours.
- Whale traders’ buying activities have contributed to BTC’s recent price surge.
Bitcoin (BTC) has seen a notable spike in the number of bullish derivative accounts in the last 24 hours, leading to a shift in market sentiment.
After establishing a low of $97,777.77 the previous day, Bitcoin’s price gained momentum, rising by 4.73% to its current price of $102,985.
Retail Investors Take Advantage of Dip
The recent surge in Bitcoin’s price can be attributed to retail investors who saw the dip as a buying opportunity. Analysis of retail activities on the derivative and spot markets shows that these could further impact Bitcoin’s price.
In the derivatives market, there has been a significant increase in bullish account positions. According to Hyblock’s True Retail Longs Account, long positions on Bitcoin jumped from 49.88% to 62.08% within 24 hours.
Whales Dominate Buying Activities
Large investors, known as whales, bought a significant amount of Bitcoin as the price corrected below $100,000 in the last 24 hours. Data from IntoTheBlock shows that over 675,000 Bitcoin worth $67.82 billion were traded during this period, with whales’ buying activities dominating selling activities.
The BTC exchange netflow, which tracks asset movement in and out of exchanges, showed more outflows than inflows. A total of 322 Bitcoin were moved from exchanges to private wallets for long-term holding, a 78.49% increase from the previous day’s exchange netflow.
However, much of this Bitcoin remains on exchanges, suggesting the potential for profit-taking, which could trigger another price drop.
Correlation with Stock Market
Analysis on CryptoQuant shows a growing correlation between Bitcoin and the U.S. S&P 500, as both assets’ market movements continue to align. This correlation comes during a period of high institutional interest and adoption, suggesting investors may view them similarly. This could impact Bitcoin as it becomes more responsive to U.S. economic activities.
Investors should consider this factor when deciding to invest in Bitcoin.
