COINOTAG News, May 21st—In a recent analysis, Bitfinex Alpha highlighted the resilience of Bitcoin as it has firmly remained above the $92,000 threshold established in late April. This upward movement indicates a robust structural foundation, characterized by a consistent price rally. The prevailing trend in the market appears to be propelled by the spot market, which experienced a brief consolidation followed by a significant surge. This suggests an ongoing accumulation phase driven by authentic demand, rather than speculative heat. The positive spot cumulative volume delta (CVD) across major exchanges supports this notion, revealing that the leading market activities are resulting from genuine buyers instead of leveraged traders.
In contrast, the derivatives market reveals a more volatile landscape, with open interest reflecting transitional phases, including the unwinding of short positions triggered by liquidations. This process of cleansing is pivotal, as it eliminates speculative bubbles and fosters a more stable market environment. The current ascent is fueled by actual fund flows, providing a durable support structure. While the potential for short-term corrections looms, the overall sentiment remains constructive.