Much anticipated relief has arrived in the larger market as Bitcoin climbs 4.70%. Hence, at the time of writing, it is $ 48,438. In the wake of BTC’s sudden surge at the start of a new week, which propelled global crypto market cap 3.51% in a single day, making way for a much-needed rebound.
Is it still a recovery?
Well, after the December 4th fall, BTC’s price rose 6% a few days later. However, it could no longer be cared for and soon sank deeper in just one day. Another price rally of almost 5% was also observed on December 12th, then on December 15th and 16th.
December 19th is interesting, so every single day of recovery that has taken place in the past two weeks could not be sustained. So it makes perfect sense to question the last bounce.
What has changed this time?
First, the recent upward momentum has lifted BTC from a lower limit of $ 45,850 to over $ 48,000 in one day. In addition, short-term holders’ losses decrease and the setting of higher lows coupled with tightening price action is a bullish divergence indicating the exhaustion of seller interest in these prices.
Additionally, the NVT signals for Bitcoin typically do not signal “oversold”, very often which results in an oversold signal at the time of writing, which could mean a reversal from the low price range.
Previously, it rebounded from this zone every time NVTS oversold. In addition, the price is depressed. The relevant question here – is this really a recovery?
A wave of upheaval is waiting …
Another notable change in the BTC indices is the 14-day percentage change for BTC Open Futures, more than 10%. Interestingly, OI changes of 15% or more in the past have caused volatility for this coin.
Additionally, the open interest for Binance futures has increased over 30% in the past few days, along with a + 7.4% increase in BTC wallet.
While funding remains neutral, the move could indicate impending volatility as Binance currently owns more than 25% of the total open interest in the market.
Along with the increased volatility, activity is also slowing as the volume of on-chain transfers has dropped from about $ 10-11 billion per day to $ 7.2 billion since December 4th.
So, while the macro setup could turn bearish in the short term, there are still signs of a bullish uptrend in the chain for Bitcoin. Additionally, as the year end approaches, BTC could fluctuate in either direction, which will be interesting to watch.