Bitcoin's funding rates are rising, a sign traders are willing to take more risk in betting on a fresh rally.
The quick recovery to near $58,000 demonstrates stronger confidence from investors in the oldest and largest cryptocurrency.
Historically, the implied volatility spread has proven a reliable indicator of upcoming shifts in market leadership.
After two days of sell-offs, bitcoin bulls finally returned.
“This is a time to make sure that you have some dry powder and are not overextended,” said one trader.
As of March 21, there were fewer than 2.44 million BTC available on exchanges, the lowest amount since August 2018.
Price charts also are sending signals the oldest cryptocurrency might be losing steam.
A pair of wildly speculative options trades on cryptocurrency trading network Paradigm has analysts’ tongues wagging.
Bitcoin's price has doubled this year, partly because of demand from institutional investors who are looking for an asset that might hold its worth if the dollar’s purchasing power declines.
Leverage has been a killer use case for DeFi from the start. But rarely has making such big wagers required so little work.
Prices settled in the mid-$50,000 range for the most of Tuesday.
Bitcoin on Monday suffered its biggest single-day price decline in more than two weeks, after the fizzing of a retail trader-driven rally over the weekend.
Bitcoin is struggling to break above its current all-time high set in mid February.
The relative sizes of the markets means it's effectively impossible for NFTs to have a price impact on bitcoin. That may change in future.
And yet, bitcoin’s trading volume shows no signs of returning to previous high levels.