Bitcoin (BTC) Rallies Past Its Previous All-Time High, Extending Gains to a Peak of $111,888

Bitcoin rallied past its previous all-time high in the USD and USDT markets on Wednesday and extended gains

Bitcoin (BTC) pushed past its previous all-time high in the USD and USDT markets on Wednesday and extended gains on Thursday, climbing to a peak of $111,880. Bitcoin’s breakout failed to usher euphoria among traders and the reaction on derivatives traders was muted, relative to previous BTC price rallies.

Analysts at 10xResearch and Amberdata are in agreement on the fact that spot market strength and not speculation, is driving gains in BTC. Bitcoin’s rally beyond $111,000 failed to kick in a euphoria among traders and the long/short ratio across top derivatives exchanges is above 1. While this indicates that traders are bullish on BTC and expect further gains, on previous instances like the 2017 and 2020 cycles, the ratio exceeded 2.

The 24-hour liquidation data shows $175 million in shorts liquidations and over $47 million in long positions were liquidated. Bearish traders are being punished for betting against Bitcoin price rally, but the key question is, how high will Bitcoin go?

Bitcoin futures open interest chart on Coinglass shows a massive spike in OI. Open derivatives contracts in Bitcoin crossed a total of $78 billion in OI on May 22. OI is climbing alongside Bitcoin price, signaling strength in the BTC uptrend. Traders are confident of further gains in Bitcoin price.

Funding rate has been positive since May 8, consistency in the green bars in the funding rate chart below shows how derivatives traders are positioning themselves for further upside in Bitcoin. A positive funding rate fuels a bullish narrative for an asset, in the case of Bitcoin this supports a thesis of gains.

Ethereum (ETH) struggles to attract institutional inflows even as ETH rallies alongside Bitcoin (BTC) in its price discovery. Altcoins in the top 50 cryptocurrencies ranked by market capitalization are in the green, rallying in the last 24 hours.

Analysts at 10xResearch and Amberdata are in agreement on the fact that BTC’s rally is being driven by strong derivatives market activity.

Bitcoin futures saw a massive spike in OI. Open derivatives contracts in Bitcoin crossed a total of $78 billion in OI on May 22. OI is climbing alongside Bitcoin price, which is currently testing resistance at $111,000.

Funding rates have been consistently positive since May 8, and traders are positioning themselves for further upside in Bitcoin. A positive funding rate fuels a bullish narrative for an asset.

The long/short ratio across top derivatives exchanges is above 1, which indicates that traders are bullish on BTC and expect further gains. However, on previous instances like the 2017 and 2020 cycles, the ratio used to exceed 2, at least in the second half of the year.

The 24-hour liquidation data shows $175 million in shorts liquidations and over $47 million in long positions were liquidated. Bearish traders are being punished for betting against Bitcoin price rally.

Bitcoin futures saw a massive spike in OI. Open derivatives contracts in the world’s leading cryptocurrency crossed a total of $78 billion in OI on May 22. OI is climbing alongside Bitcoin price, which is currently testing resistance at $111,000.

Funding rates have been consistently positive since May 8, and traders are positioning themselves for further upside in Bitcoin. A positive funding rate fuels a bullish narrative for an asset.

The long/short ratio across top derivatives exchanges is above 1, which indicates that traders are bullish on BTC and expect further gains. However, on previous instances like the 2017 and 2020 cycles, the ratio used to exceed 2, at least in the second half of the year.

The 24-hour liquidation data shows $175 million in shorts liquidawhich is a key level to watch. A break above this zone could open the door for a move toward the 141.4% Fibonacci retracement level at $127,352.

The 50% Fibonacci retracement level from April 7 low to May 22 peak is at $96,404, which is a key support zone for Bitcoin. A break below this level could signal that the current rally is running out of steam.

Bitcoin is currently trading at $110,000, up over 100% since the start of the year. The cryptocurrency is now the 10th most valuable asset in the world, according to CoinMarketCap.

Despite its recent gains, Bitcoin is still a volatile asset and its price could fluctuate significantly in the short term. However, the long-term outlook for Bitcoin remains positive, as the cryptocurrency is becoming increasingly mainstream and accepted by institutions.

Ethereum (ETH) on-chain data shows a slight increase