Traders have drawn attention to Bitcoin as the star token leads the markets towards new highs. With a new ATH at $107,000, the global market capitalisation surges above $3.74 trillion, signalling the possibility of reaching $4 trillion in the next few months. Although a strong altseason is required to validate the claim, the BTC price is keeping the bullish momentum alive for now. After the recent breakout, it is quite evident that the bulls and the traders believed the peak of the prevailing run was not yet reached, suggesting an extended bullish push for the BTC price for some more days.
Ever since some of the altcoins have begun to gain strength, the BTC dominance has been closely watched. Moreover, it has become the most talked-about topic within the markets as the levels are constantly failing, which is speculated to be a signal of a strong altseason. The reports from Santiment do validate the above claim, which says the traders mainly focused on the BTC dominance on social media and also the impact of altcoins.
Meanwhile, the traders have largely been enticed towards Bitcoin, as nearly 40% of the trading volume is flowing into BTC. This sheds light on the growing confidence in the token as more and more traders are entering into trade. The data from Santiment shows a magnificent rise in the non-empty wallets, which has marked a peak.
Ever since the trend reversal that occurred in November, the traders have become extremely optimistic about the next price action. As a result, the non-empty wallets over the network have surged to 54.6 million, a net increase of 2.71 million and marking a rise of over 5% over the past year. However, this rise in the non-empty wallets highlights the rise in the trader’s interest; however, this may certainly not be major to push the BTC price higher but to extract the profits at the highs.
The data shared by analyst Ali suggests that traders are expecting a price drop soon, as more than 62% of them have opened BTC futures positions that are going short. However, this cannot be treated as a bearish signal, as the current price action suggests these shorts may witness a bloodbath. Another possibility could be a short squeeze incoming, wherein these shorts may be sold excessively, causing massive buying pressure and leading to a rapid increase in value.
The Bitcoin (BTC) price currently appears to be extremely strong, with new highs above $107.5K, while market dynamics suggest a more bullish outlook.
