CryptoQuant analyst Axel Adler Jr. says Bitcoin is getting close to the line that marks a bullish market state. In the last 24 hours, the price climbed 3.9%, while open interest went up by 11,200 BTC (+3.4%). That points to a rally being pushed by a fast buildup in futures leverage, not by short covering.
Bitcoin has already touched the bullish model threshold head-on, but the signal still is not confirmed. The thing that matters: a daily close above the model's dynamic threshold. If price stays at that level after the shift, and if the built-up futures leverage avoids a sharp liquidation, the signal would look more durable. But the big risk is simple. A quick leverage unwind could flip the rally in the other direction.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.