Bitcoin will continue to rise, says Glassnode report
Glassnode latest Bitcoin report highlighted growth in both futures and open and outstanding contracts. And, according to company data, Bitcoin’s trend is to continue rising.
Glassnode pointed out that after the drop in open positions in mid-April from $27.4 billion to $10.6 billion, or 61%, there was a 56% rebound.
So, in terms of the directional bias for traders, the report states that perpetual futures funding rates have a moderate bias towards long positions.
“Financing rates have remained positive since the end of July. Bitcoin futures markets are trading above spot prices,” says the study.
As the company highlighted, this means that a large part of the market believes that Bitcoin will rise in the short and medium term.
Although currently positive, financing rates are nowhere near the peaks seen in the uptrend in the first and second quarters, highlights the company:
“This could indicate that excessive leverage is not yet in play. So perhaps the uptrend will remain reasonably driven by the healthy spot market.”
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Options markets also registered multi-month highs in open interest. Outstanding interest on options, for example, increased by $4.1 billion (+105%) from June lows.
“The current level of $8 billion in open interest is similar to the levels seen during the May and January-February 2021 settlement,” says the study.
Also according to the company, activity on the network until recently was low and did not respond to the positive action of prices. Transactions remained at historically low levels, between 175,000 and 200,000 daily transactions.
According to Glassnode, this means that as there are fewer transactions, the amounts transferred are also smaller. The authors add that the Bitcoin network registered a daily volume of $18.8 billion last week.
“This is 37% lower than the peak of the 2017 bubble. And 57.6% below the peak set during the capitulation event in May,” said Glassnode.
Finally, the report concluded that all metrics point to an uptrend. However, this trend does not indicate, yet, an overcoming of the historical mark above $64 thousand.