June 22, 2021

Bitcoin Sets New All-Time High on Heels of OTC Buying Frenzy

2 min read
  • Bitcoin and the aggregated cryptocurrency market are captured within another leg greater, with bulls staying in full control of the marketplace
  • This uptrend comes shortly after an intense selloff seen yesterday evening, which came as an outcome of extremely high funding rates on margin trading platforms
  • The move lower reset these funding rates and cleared out “late longs”– which laid the groundwork for a relocation higher
  • One analyst described in a recent tweet that this push higher comes close on the heels of a flurry of OTC purchasing activity
  • This is a bullish sign that suggests big buyers are still delving into Bitcoin in spite of its fairly high costs

Bitcoin and the aggregated cryptocurrency market have actually been captured within the throes of another uptrend, with Bitcoin rallying previous $40,000 while the remainder of the market follows close on its tracks.

This extreme growth is merely an extension of the momentum that it has actually seen throughout the past few weeks and months and comes as a combination of retail and institutional money pours into the marketplaces.

One on-chain expert noted that OTC activity as of late came about just before this push past $40,000 and might indicate that further benefit looms.

Bitcoin Rallies Past $40,000 as Uptrend ContinuesAt

the time of writing, Bitcoin is trading up simply under 3% at its present rate of $40,700. This is around the cost at which it has actually been trading all early morning.

It briefly ran as high as $42,000 before facing some inflows of selling pressure that hampered its growth and triggered it to see a retrace to $39,000.

It has since bounced from these lows and shows some immense indications of strength as bulls try to press it back up towards $41,000.

On-Chain Analyst: Flurry of OTC Trading Activity Occurred Before Latest Rally

One on-chain analyst discussed in a current tweet that Bitcoin’s newest surge comes just days following an enormous rise in OTC buying activity.

He keeps in mind that these financiers are presently up 24% on their BTC investments.

“Looking at the current Coinbase outflow, perhaps OTC deals, I believe we can approximate their PNL. BTC surged 24% given that Jan 2. If you were institutional investors, would you be satisfied with 24% PNL for Bitcoin?”

Bitcoin

 Image Courtesy of Ki Young Ju. Source: CryptoQuant.

Whether or not these types of OTC offers continue strong as Bitcoin sets brand-new all-time highs will offer some insight into this movement’s sustainability.

Included image from Unsplash.
Charts from TradingView.