Key results:

• The Bitcoin ETF spot Influences and low lever suggests that the BTC rally is growing.

• Federal reserve liquidity in the USA and penniless sale of Bitcoin bonds exceed USD 110,000.

Bitcoin (BTC) was not able to maintain a stubborn shoot after reaching the fresh highest all -time in the amount of USD 109,827 on May 21, which prompted traders to ask whether the markets of derivative instruments mainly ralled the rally. From a wide perspective of $ 77 billion in open interests, Bitcoin Futures undoubtedly played a role. However, a closer look at the data shows more positive prospects for further price benefits.

The current 7% annual bitcoin bonus is good within 5% to 10% neutral, which has been typical for the last two weeks. This indicator can easily exceed 30% during periods of sturdy optimism, so the current level is relatively low. At the same time, the lack of excessive lever reduces the concerns associated with the rally driven primarily by derivatives.

Sustainable books on orders and the influx of ETF Bitcoin point to a point driven rally

For comparison, during the previous Bitcoins 109,346 USD of all time on January 20, the annual Futures bonus reached 15%, which shows a much higher level of stubborn leveled items affecting the price. That is why the current market of Bitcoin derivative instruments seems to be healthier, which is suggested by sturdy demand in point markets.

During the January bull, Bitcoin on Coinbase traded with a bonus compared to other stock exchanges. This so-called Coinbase bonus is not present now, which means that the pressure of purchase is more evenly distributed-a healthier market.

While excessive purchase pressure on one stock exchange is not necessarily stubborn, it can facilitate the liberation of unbalanced price increases when the liquidity is low. These data confirm the idea that derivative instruments markets were not the main driving force of the last price increases.

In addition, $ 1.37 billion net inflow in order to see Bitcoin rotary funds (ETF) in the United States between May 15 and 20, he also suggests that the buyers of points, and not traders of derivative instruments, were the main force of the rally.

Despite the lack of a conviction in Bitcoin term contracts, several indicators indicate a further advantage. Forced liquidation of BTC BTC Futures positions were relatively low amounted to $ 170 million between 18 to 21 May, strengthening the idea of ​​a rally driven by a point. For comparison, the rally to $ 104,000 on May 9 caused $ 538 million in liquidation within three days.

Related: Is the price of Bitcoin close to the leading cycle? – 5 indicators that support traders decide

On May 21, Bitcoin options markets showed a slight boost in the demand for PUT options (sale), but nothing unusual. For comparison, the ratio of PUT-to-Call in Deribit dropped to 0.4x during the previous bull course on January 20, reflecting lower confidence due to reduced volume in connection options (Buy).

Movement up Bitcoin could have been confined by macroeconomic factors, especially as the tariff war. Despite this, the possibility of reaching a price of USD 110,000 and higher is partly based on the penniless position of the US Federal Reserve. Injection of liquidity can soften the fears of recession, but also reduces the attractiveness of government bonds, which promotes risk assets such as Bitcoin.

This article is used for general information purposes and should not be and should not be treated as legal or investment advice. The views, thoughts and opinions expressed here are themselves and do not necessarily reflect or represent the views and opinions of Cointelegraph.