Research firm Novaque Research, in its report evaluating the recent rise in Bitcoin (BTC), stated that this rally is based on “more sustainable fundamentals” compared to previous periods.
According to the company's analysis, the decrease in selling pressure from miners, the renewed interest from investors and the strengthening of institutional positions indicate a structural transformation in market dynamics.
The report noted that the months-long decline in mining reserves has stopped and a reaccumulation trend has begun. This, it added, has eased supply pressure in the market and indicates that liquidity is shifting back toward buyers.
Novaque Research also noted that the bid-ask ratio in spot and futures markets, rising above 1.0, signaled renewed aggressive buying. The shift from weak buying sentiment in late September to strong buying appetite in early October represents a “clear reversal in market sentiment,” according to the report.
A similar picture is evident on the institutional side. The increase in short- and medium-term open positions in the CME options market indicates a renewed confidence among professional investors. Novaque stated that this increase, which parallels price increases, points to new capital inflows.
The research firm noted that if this trend continues, a relief rally could be on the horizon, during which approximately $16 billion of short positions could be liquidated.
*This is not investment advice.
