CryptoQuant: The Bitcoin rally is driven by new longs in the perpetual futures market - ForkLog: cryptocurrencies, AI, singularity, the future

# CryptoQuant: Bitcoin rally caused by new longs in the perpetual futures market

The rise in Bitcoin and Ethereum prices is linked to the opening of new long positions in the perpetual futures market. CryptoQuant analysts have reached this conclusion.

Within 24 hours after Donald Trump announced a two-week ceasefire between the US and Iran, the first cryptocurrency gained about 4%, and Ether — 6%. This is the strongest daily movement in over a month, breaking the recent downward trend.

According to CryptoQuant research head Julio Moreno, the main driver of growth was derivatives market participants. Within 24 hours of the news, open interest (OI) in perpetual contracts for BTC and ETH increased by $2.1 billion and $2.2 billion respectively. Meanwhile, dollar-denominated open interest for both assets reached a nearly one-month high.

“The synchronized spike reflects positioning amid macro events: traders expect increased risk appetite. Importantly, the coin-denominated open interest has also grown significantly. This rules out short liquidations as the main reason and confirms the opening of new pure longs,” — Moreno emphasized.

Return of Buyers

At the same time, buying activity on futures platforms increased. The buy-sell ratio (Taker Buy Sell Ratio) for both cryptocurrencies exceeded one. This indicates buyer dominance and confidence in further growth.

“Coordinated bullish positioning for BTC and ETH confirms that the market is pricing in a sustained improvement in macro conditions at least in the short term,” — the expert added.

Meanwhile, investor demand from the US has recovered. The Coinbase premium index for both coins turned positive after several weeks in the negative zone. Moreno believes that if the truce holds, it will support the trend and strengthen the upward momentum.

Coinbase Premium Index. Source: CoinGlass. The price of the first cryptocurrency has already surpassed the key level of around $69 400 — the lower realized price of traders, which had served as resistance for several weeks.

If the asset holds this level and the geopolitical situation does not worsen, the next target will be around $79 000, analysts noted. Historically, this threshold has been a resistance zone for a bear market and a “main obstacle for structural recovery.”

Let’s recall that several metrics indicated a possible trend reversal for the first cryptocurrency.