Bitcoin's ongoing rally looks to have legs, as the price rise is backed by an uptick in the network activity.
The top cryptocurrency jumped to a three-month high of $9,850 on Thursday and was last seen trading around $9,750, representing 36 percent gains on a year-to-date basis.
A few observers think that an increase in on-chain volume along with an increase in price is an indicator of trend strength.
Going with that argument, the recent price rally looks strong, as the cryptocurrency's mean onchain transaction volume has also reached a three-month high of $72,555, according to the data analytics form glassnode. The previous three-month high of $72,546 was seen on Jan. 17.
"A divergence between on-chain transaction volume and price appreciation has typically been a bearish signal,” Nicholas Pelecanos, advisor to NEM Ventures, told CoinDesk.
Further confirming the price uptrend is the surge in open positions in bitcoin futures listed on top exchanges.
For instance, open interest, or the number of open futures contracts in monthly bitcoin futures on the Intercontinental Exchange's (ICE) Bakkt platform, rose to a new lifetime high of $13 million on Thursday, surpassing the previous record high of $12 million reached on Feb. 3, according to data analytics firm Skew.
Open positions on the Chicago Mercantile Exchange's bitcoin futures also jumped to a five-month high of $249 million on Wednesday – up 34.5 percent from $185 million seen two weeks ago. |