Bitcoin price surged to a new 2024 peak above $64,200 on March 4, as bullish BTC traders sought to get on the wagon early before ETFs resumed trading.
In a rare turn of events, on-chain data shows that after BTC price retraced 6% from last week’s $64,000 peak, speculative traders in the derivatives kept doubling down on their bullish bets.
Can Bitcoin price finally reclaim a new all-time high above $70,000 this week after 3-years in the doldrums.
BTC traders have raised leveraged bets 300% compared to last week
Bitcoin price attained another major milestone on March 4 as price raced past the $64,000 mark for the first time in 840 days dating back to Nov. 15, 2021.
But the buying pressure in the crypto market cooled after Bitcoin ETFs, the major drivers of the ongoing rally, closed trading on March 1. In effect, BTC price retraced 6% towards the $60,000 support territory.
However, amid the price consolidation between Feb. 28 and March 4, vital on-chain data shows that Bitcoin speculative traders have remained overwhelmingly bullish.
Indicatively, Santiment’s aggregate funding rate data monitors changes in fees perpetual futures traders pay to opposing positions holders. The current funding rate trends show that Bitcoin bulls continue to pay record fees to keep their keep their long contracts open, in conviction that BTC will deliver another major upswing in the week ahead.
As seen above, BTC funding rate has remained at unusually elevated levels since prices retraced from $64,000 on Feb. 28. In specific terms, the current BTC aggregate funding rate value of 0.06% on March 3 is a whopping 300% increase from last week’s opening value of 0.02% recorded on Feb. 27.
Typically, such elevated values of positive funding rates means that leveraged BTC long position holders are currently paying unusually highly fees to short traders in anticipation of bigger profit margins if prices will move upwards in the near-term.
More so, when the is market signal occurs during a price consolidation phase as observed above, it signals intention to defend their positions and hold out for a rebound in the short-term rather than exit.
Notably, the last time BTC traders raised funding rates above 0.06%, was on Jan. 3, when the positive speculation surrounding Bitcoin ETFs approval heightened. And within that week, BTC price soared 10% to reach $47,000, which was a 21-month peak at the time.
Forecast: How high can Bitcoin price go this week?
If the current market dynamics persist, this 300% funding rate increase suggest that Bitcoin price likely to advance towards $70,000 than it is at risk of losing the $60,000 support in the coming week.
In confirmation of this stance, IntoTheBlock’s global in/out of money data shows that about 97% of existing Bitcoin holders are current in profitable positions. In essence, majority of might be reluctant to sell. That curtailed selling pressure puts BTC price in a prime position to hold a relatively high support level above the $60,000 area.
And if the Bitcoin ETFs enter another buying frenzy as trading opens for the week March 4, the highly leveraged bulls could capitalize to finally reclaim a new all-time high price $70,000.
However, it may not be plain sailing to $70,000 as the bears could make another last gasp effort to knock back the rally once BTC prices approach $65,000.
The chart shows that there’s a final cluster of 193,000 addresses that acquired 48,380 BTC 3 years ago at an average price $65,164. A rapid profit-taking wave from those holders could significantly slowdown the Bitcoin price rally to $70,000.
