Bitcoin's meteoric rise to $56k leaves traders hopeful 🚀

Bitcoin Price Rally Continues: Traders Betting on Further Upside

Bitcoin (BTC) has been on a consistent rise in the past month, nearing its all-time high of $68,800 in November 2021. Traders are now placing their bets on a further price rally, as indicated by Santiment data. BTC is up by 9% in the last 24 hours and is currently trading around $56,200. The cryptocurrency’s market cap has surpassed $1.1 trillion with a market dominance of 51.9%.

Bullish Momentum: MicroStrategy Acquires More Bitcoin

On February 26, Bitcoin gained bullish momentum, leading to MicroStrategy, led by Michael Saylor, acquiring an additional 3,000 BTC at an average price of $51,813. This purchase was valued at $155 million.

Bitcoin’s Open Interest and Funding Rate Surge

Data provided by Santiment reveals that Bitcoin’s total open interest (OI) increased from $9.55 billion to $10.2 billion. This level was last seen in July 2022. Following the price rally, the number of trades betting on a further price increase for Bitcoin has also surged. The total funding rate aggregated by BTC on all exchanges rose from 0.016% to 0.019%, indicating an increase in long-positioned trades.

Increase in Whale Transactions and RSI

Santiment also reports an increase in whale transactions involving at least $100,000 worth of BTC. The number of these unique trades rose from 9,067 to 13,142 over the past 24 hours. Such surges in whale activity typically lead to high price volatility.

In addition, Bitcoin’s Relative Strength Index (RSI) has risen from 70 to 73 in the past day. This suggests that Bitcoin may be slightly overheated at its current price point, indicating a potential cooldown. To sustain its bullish trend, BTC’s RSI would need to stay below the 60 mark.