After a period of stagnation and a downtrend, the unending market of Bitcoin experienced a brief rebound in the past few weeks. As traders cautiously monitor the crypto asset’s near-term potential, this return was followed by a period of high volatility and price consolidation.
A Slow Return to the Endless Bitcoin Market
The latest on-chain data shows that the Bitcoin permanent market is regaining momentum, indicating a positive development for the digital asset. Market expert and Crypto Banter show host, Kyle Doops, shared development of the Bitcoin Perpetual Market Directional Premium metric with the crypto community at X (formerly Twitter).
The latest change in the key metric coincides with the improvement in market conditions as Bitcoin tries to recover from its run. assembly phase. The short increase reflects increased investor interest due to increased trading activity and a slight increase in funding levels.
According to Kyle Doops, by mid-September, the monthly amount paid for long-term contracts dropped from $120 million in March to about $1.7 million, and has since returned to $10.8 million.
In addition, the expert noted that this increase is still significantly below the levels of January 2023, indicating a decrease in the enthusiasm of the projections and a decrease in the rate. to seek during market correction. However, as asset confidence strengthens, this brief rise may be seen as an indication of Bitcoin’s renewed momentum, with market conditions continuing to stabilize.
Kyle Doops also reported a significant increase in Estimated Leverage Ratio (ELR) for another X. postednow considering stablecoin reserves. Specifically, the increase in this metric suggests a higher risk associated with it Bitcoin products.
As a result, traders must reduce risk and avoid emotional decisions, especially during volatile conditions because the market likes rapid changes.
BTC Maintains Its Renewed High Power
Bitcoin has maintained a positive trend since the digital asset saw a rebound almost a week ago. The renewed strength has led to increased confidence in BTC’s short- and long-term potential, with many analysts predicting that a major rally is imminent.
Crypto analyst and trader Milkybull recently predicted a big upcoming rally for BTC in the near term due to a bullish breakout from the Moving Average Convergence Divergence (MACD) indicator. According to the commentator, this Get out it is important as it may indicate that the bull rushes to the $120,000 price level, suggesting that the next move is about to happen.
However, given the dynamic growth potential in the coming days, traders and investors are watching closely for further confirmation of the bullish cross as they carefully interact with crypto assets.
Featured image from iStock, chart from Tradingview.com