“Bitcoin demonstrates remarkable resilience,” stated CZ, the creator of Binance, via X.
This perspective aligns with the recent upward momentum of bitcoin $BTC$79,821.88 and the broader cryptocurrency market, which have managed to retain gains following a sharp dip during early Asian trading on Wednesday, prompted by news of a Democratic victory in the midterm elections.
However, as of this writing, two crucial factors warrant caution for bullish investors.
Firstly, there appears to be a lack of new leverage entering the market. Bitcoin’s futures open interest (OI) has largely remained steady at $53.40 billion, as reported by Coinglass. This trend is mirrored among various cryptocurrencies, including SOL, HYPE, DOGE, NEAR, and others, where OI has either stagnated or decreased despite the price increase.
This indicates a shortage of fresh capital influxes, which typically accompany market rallies.
Secondly, indicators on the spot market also reflect weakness. Spot ETFs in the U.S. attracted only $74 million from investors on Wednesday. This comes after significant outflows exceeding $400 million in the initial two days of trading and over $500 million in the previous month, according to SoSoValue.