Bitcoin and the aggregate cryptocurrency market are in another uptrend, with the bulls retaining full control of the market.
This uptrend follows an intense sell-off last night – the result of incredibly high funding rates on margin trading platforms.
The downward movement reset these funding rates and cleared out “late longs” – which laid the foundation for an upward movement
An analyst said in a tweet that this surge was due to a spate of OTC purchases.
This is a bullish sign because it suggests that large buyers are still buying Bitcoin – despite its relatively high prices.
Bitcoin and the aggregated cryptocurrency market are caught in the clutches of yet another uptrend, with Bitcoin Loophole rising above $ 40,000 as the rest of the market follows closely on its heels.
This intense boom is simply an extension of the momentum BTC has seen over the past few weeks and months – and comes as a combination of retail investor money and institutional capital pouring into the markets.
An on-chain analyst comments that OTC activity has been just before the $ 40,000 mark recently and could indicate that another spike is imminent.
Bitcoin tops $ 40,000, upward trend continues
At the time of writing, Bitcoin (To Buy Bitcoin at Plus 500 Instructions) is trading at just under 3% up at its current price of $ 40,500. This is roughly the price it has been trading at all morning.
It rose briefly to $ 42,000 before facing some selling pressures that hampered its growth and caused a regression to $ 39,000.
It has since rebounded from that lows and is showing some immense signs of strength as the bulls try to push it back towards $ 41,000.
On-chain analyst: This triggered the recent surge in BTC
An on-chain analyst wrote in a tweet that Bitcoin’s recent spike came just days after a massive surge in over-the-counter buying activity.
He notes that these investors are currently up 24% on their BTC investments.
“When we look at the recent Coinbase outflows, possibly OTC trades, I think we can estimate their PNL. BTC is up 24% since Jan 2nd. If you were institutional investors, would you be satisfied with 24% PNL for Bitcoin? „