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The world’s largest cryptocurrency Bitcoin (BTC) has been flirting around $27,000 for a while with the network witnessing a strong amount of trader activity and network activity. On-chain data shows that traders have been heavily shorting which could ultimately lead to a short squeeze driving upward price pressure on Shiba Inu.
On-chain data provider Santiment explained that Bitcoin traders have taken a strong bearish stance on both Deribit and Binance. This increases the likelihood of potential liquidations that could drive prices higher.
Since the surge in short positions began to emerge last week, $BTC’s price has risen by +4%. There’s a good chance that this trend may persist.
On the other hand, the Bitcoin active addresses have also surged to their 5-month highs. This has also increased the odds of the BTC price rallying back to its 2023 high of $31,000.
Popular crypto analyst Ali Martinez also explains that a bull market is frequently associated with heightened on-chain activity!
This becomes evident when the monthly average of new wallets (indicated in red) surpasses the annual average (represented in blue), signifying reinforced network fundamentals and heightened usage. It’s noteworthy that despite static prices, on-chain activity for BTC is on the rise, hinting at the potential resurgence of a BTC bull run, he writes.
Bitcoin Institutional Adoption and FOMC Impact
Top financial giants have shown growing interest in Bitcoin over the past few months. World’s largest asset managers like BlackRock, Fidelity, and others have applied for a spot Bitcoin ETF with the US SEC.
Recently, Japanese banking giant Nomura unveiled its own Bitcoin fund to push further Bitcoin adoption. Nomura’s Laser Digital Bitcoin Adoption Fund seeks to facilitate institutional investors’ access to Bitcoin in a manner that is both cost-effective and secure.
To ensure the safety of the fund’s assets, Laser leverages the regulated custody solution provided by Komainu. Komainu, established in 2018 through a collaboration between Nomura, Ledger, and Coinshares, plays a pivotal role in safeguarding these assets.
On Wednesday’s FOMC meeting, the Fed kept the interest rates unchanged in the range of 5.25%-5.50%, in line with market expectations. However, the decision had little impact on the Bitcoin price and the broader crypto market.
Bitcoin (BTC) Price Action Ahead
Popular analyst Ali Martinex shows a pattern that has emerged since mid-April, where whenever the RSI hits 73.31 on the 4-hour chart, Bitcoin’s price retraces.
Currently, we’re witnessing a similar scenario as BTC approaches a descending resistance trendline at $27,440. In case of a correction, Bitcoin could potentially reach $25,200 or even lower, creating a potential opportunity for those looking to ‘buy the dip.’
However, it’s essential to keep an eye out for a 4-hour candlestick closing above $27,440, as this could signify the resurgence of a bull run
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