Bitcoin’s net income number becomes positive, new all-time high access?
Bitcoin’s gradual recovery continues, with the asset trading currently at $95,409 after posting a 1.7% increase in the past 24 hours. BTC has climbed nearly 15% over the past two weeks, recovering steadily from the recent correction period.
While momentum seems to have been measured compared to past breakthroughs, potential market data suggests that a structural shift is underway that could impact the next major move.
So far, several indicators have pointed to improved sentiment, especially in the derivatives market, which is now the overall trading volume of Bitcoin.
Analysts’ latest observations suggest that the balance of trading activity has changed, suggesting that the long position is restoring the power of the shorts. Meanwhile, the updated cycle model suggests that Bitcoin may still have room to expand its current trend and there is a structural similarity between the current market and the 2017 cycle.
What signal does the Bitcoin net receiver send when the volume of the bitcoin net receiver becomes positive?
According to CryptoQuant analyst Darkfost, the 30-day moving average of Bitcoin net receipts has firmly returned to positive territory.
Net receiver number is an indicator that compares the relative size of long positions and short positions in the derivatives market over a given period. Positive readings indicate that the purchase pressure (long position) exceeds the sales pressure (short position), while the negative reading is the opposite.
DarkFost notes that the derivatives market now accounts for about 90% of Bitcoin’s trading volume, exceeding the spot and exchange-traded (ETF) volume. As a result, a shift in derivative sentiment can often presumably broader price movements.
The net recipient volume returns indicate that speculative participants are positioning for continued upward space. If continued, this adjustment in the derivatives market could serve as a catalyst to enhance Bitcoin’s recent earnings and lay the foundation for further price discovery.
Circular model adjustment points to rising continuation
In another analysis, crypto analyst Mignolet provides insights into the long-term trend prospects of Bitcoin. Mignolet uses refined cyclic models based on market capitalization data, suggesting that traditional cyclical indicators are slow and reflect the latest recovery.
To address this lag, the time series of the model was adjusted to detect early changes in market behavior. Mignolet observed that what appears to be a “bear market” area under the traditional model is actually a buying opportunity in the continuous upward cycle.
According to Mignolet, the current market structure is similar to the late stages of the 2017 bull market, rather than the early stages of the new economy’s decline. If this parallel line holds, Bitcoin may still have huge upward potential before entering a major correction phase.
Feature images created with DALL-E, TradingView’s chart
