An analyst who continues to build a following with his timely Bitcoin (BTC) calls believes that the crypto king could be in the midst of a full-blown bull market.
In a new video update, pseudonymous analyst Credible Crypto tells his 355,800 followers on the social media platform X that Bitcoin traders who are using leverage on the perpetual futures market appear to be leading the BTC rally.
[adinserter block="1"]According to the analyst, leveraged traders spearheading the BTC surge may not be the healthiest way to sustain an uptrend but the situation could be suggesting that Bitcoin is moving into a regime of a full-fledged bull market.
“Everything that we’re seeing tells us that this rally is technically perpetual [futures] driven not spot driven, which isn’t the healthiest for a rally in general but again there will come a point in time during this rally to new highs where you’re going to get an elevated funding rate, just consistently elevated. You’re going to get perpetual futures consistently higher with a consistently higher funding rate.
That’s just how it is when we get to the full-fledged bull market. So potentially that we’re now seeing that transition from an environment in which we have relatively low funding to an environment where we’re going to have consistently high funding and perpetual futures consistently leading the market, it’s possible we could be getting to that point.”
The analyst also highlights that while leveraged traders are spearheading the rally, spot market buyers appear to be supporting the uptrend.
“This isn’t really a spot-driven push to the upside. At the same time, we are getting what looks to be spot [market] absorption at every consolidation which is preventing the price from going any lower. So it’s very possible that instead of getting aggressive spot buyers, we’re just getting spot buyers that are sneakily absorbing all the sells here.”
At time of writing, Bitcoin is trading at $41,676, up over 4% in the past day.
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