$BTC
Bitcoin Rally Ahead? These Indicators Say Yes
According to a CryptoQuant Quicktake post published today, BTC is showing multiple short-term bullish signals, fuelling optimism that a breakout above $90,000 could be imminent.
Related Reading: Bitcoin Undervalued? Analyst Breaks Down Bullish On-Chain Metrics
In their analysis, CryptoQuant contributor EgyHash highlighted two key indicators that hint at bullish reversal for the apex cryptocurrency. First, the contributor outlined BTC’s Exchange Inflow metric.
EgyHash noted that exchange inflows – the amount of BTC being deposited into exchanges – have dropped significantly in recent months. Since peaking at 120,000 in November 2024, the metric has seen a sharp decline, suggesting that holders are choosing not to move their BTC to exchanges, thereby potentially reducing sell pressure.
The chart below shows a consistent drop in exchange inflows since November 2024, despite BTC’s price gains in December 2024 and January 2025. As of now, exchange inflows sit around 9,300.
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In addition, EgyHash pointed out that Bitcoin’s open interest has surged by $6 billion over the past two weeks. This rise has been accompanied by a positive shift in funding rates, signalling a bullish market outlook.
funding rates
To explain, a rise in open interest shows that more money is flowing into BTC futures or perpetual contracts, indicating increased trader participation and confidence. Similarly, positive funding rates suggest that long positions – bets on BTC price going up – are dominant, and traders are willing to pay a premium to hold these positions.
That said, there is some caution to be considered here. If the BTC derivatives market becomes too leveraged, then it may increase the risk of a sharp price correction due to mass liquidations.
