Research firm Novaque Research said in a report assessing the recent rise in Bitcoin (BTC) that the rally was based on a “more sustainable foundation” compared to previous periods.
The company’s analysis shows that lower sales pressures from miners, renewed interest from investors, and strengthened institutional positions indicate structural changes in market dynamics.
The report noted that the months-long decline in mining reserves has ceased and the trend towards re-accumulation has begun. This reduces supply pressure in the market and shows that liquidity is coming back towards buyers.
Novaque Research also noted that bid rates in spots and futures markets, which are rising above 1.0, informed of updated, offensive purchases. The report says the shift from weak buying sentiment in late September to strong shopping appetite in early October represents a “clear reversal of market sentiment.”
A similar picture is evident in the institutional aspect. The increase in short- and medium-term open positions in the CME options market shows new confidence among professional investors. Novaque said the rise, similar to prices, indicates a new capital inflow.
The research firm noted that if this trend continues, a relief rally could be on the horizon as it could liquidate a short position of around $16 billion.
*This is not investment advice.
