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Unlike previous market rally, Bitcoin (BTC)’s latest rebound – pushing it from $74,508 on April 6 to just over $100,000 at the time of writing, characterized by healthier prices.
Current Bitcoin rally shows no signs of overheating
According to the latest crypto speed post by contributor Avocado_onchain, last year’s BTC Bull Cycele was the leading cryptocurrency creation and broke multiple historical peaks (ATHS) – accompanied by sharp peaks in Binance Market Market purchases and funding rates.
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It is worth noting that due to overheating, the funding rate suddenly increased twice, and the price fell sharply. In this case, overheating refers to excessive bullish leverage in the futures market, which increases the cost of long positions, indicating that excessive aggressive sentiment is usually before market corrections.
The following chart illustrates these corrections triggered by excessive leverage in BTC futures. Specifically, Boxes 1 and 2 show a sharp rise in second-hand capital rates, initially accompanied by price increases, and then extended the correction period.
However, the current gatherings are different. According to Avocado_onchain, Bitcoin’s continued rebound is happening with no overheated funding rates. In fact, the binary market buying volume is trending downwards – as shown in box 3 in Figure 3, which is in sharp contrast to the previous bull cycle.
Analysts believe these are signs of healthier rallying, as early bull runs were marked by overheated funding rates and sudden corrections, which weakened investor sentiment. In contrast, the current rally maintains a relatively stable funding rate, indicating that market behavior is more cautious and sustainable.
Despite short-term price volatility, market purchases have shown a steady upward trend since 2023, marking the yellow arrow in the chart. Analysts noted:
This suggests that buying sentiment is still good for further gains, which suggests that it is not the time to consider exports. We cannot predict exactly when Bitcoin will break its previous highs, but the current chain and market data signals are still very constructive.
Other metrics point to new ATH
In addition to stable financing rates and encouraging market purchase volume, BTC also goes to several other Positive signs In the near future, new ATH points to flagship digital assets.
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For example, chain data indicates that the long-term holder is Don’t selleven if BTC trades around $108,786 ATH recorded in January. This behavior suggests that these investors expect further upside.
That is, analysts are cautious about overly optimistic expectations, pointing out that Bitcoin may still be Distant By experiencing a real supply shock. At press time, BTC was trading at $102,393, down 1.4% in the past 24 hours.
Featured images from Unsplash, charts from CryptoQuant and TradingView.com
