Trading volumes have surged by 55% to $42 billion, indicating that buying pressure is quite strong.
In the past 7 days alone, the token has booked a 6.2% increase, and a handful of technical indicators are flashing extremely bullish signals.
Bitcoin’s funding rate has hit its highest level since October 5, back when the token reached its latest all-time high. Data from CoinGlass shows that, on January 1, the OI-weighted funding rate hit 0.011%.
A strong spike in BTC’s funding rate indicates that speculators have jumped back into the market and seem to believe that this could be the beginning of the top crypto’s next leg up.
The last time this metric reached this mark during a bearish cycle was in September this year. Back then, the price of BTC recovered by 10%, moving from $108,000 to $117,000 in just a few weeks.
Despite the latest uptrend, Bitcoin’s open interest (OI) is still on a downtrend. Data from CoinGlass shows that traders’ exposure to the token in the futures market has dropped from 752,000 BTC in mid-November to 663,000 BTC at the time of writing.
However, market sentiment is improving. The Fear and Greed Index has bounced back from a record low of 11 a few weeks ago to 42 at the time of writing. This means that investors’ attitude has shifted from Extreme Panic to Neutral following BTC’s latest consolidation.
