Bitcoin price rally to $25K followed by total crypto market cap retest of the $1.13T resistance

The full crypto marketplace capitalization rejected astatine $1.13 trillion connected Feb. 16, but determination was nary alteration successful the month-long ascending transmission structure. More importantly, this level represents a 43% summation successful 2023, which is acold from the $3 trillion level achieved successful Nov. 2021. Still, the existent betterment is notable. 

Total crypto marketplace headdress successful USD, 1-day. Source: TradingView

As shown above, the ascending transmission initiated successful mid-January has near immoderate country for a 10% correction down to $1 trillion without breaking the bullish formation.

Investors reacted positively to the 5.6% year-on-year U.S. CPI ostentation summation connected Feb. 14 and the 3% retail income monthly maturation connected Feb. 15. Bitcoin (BTC) had the biggest affirmative interaction connected the full crypto capitalization arsenic its terms gained 12.5% connected the week.

One country of interest is simply a Feb. 16 communicative connected Binance.US fiscal transactions to Merit Peak, a trading steadfast managed by CEO Changpeng Zhao. Interestingly, Reuters reported that a Binance.US spokesperson said Merit Peak was "neither trading nor providing immoderate benignant of services connected the Binance.US platform."

The 10.1% play summation successful full marketplace capitalization was held backmost by the humble 1.8% gains from BNB and the XRP 2.5% terms increase. On the different hand, lone 3 retired of the apical 80 cryptocurrencies finished the week with antagonistic performances.

Weekly winners and losers among the apical 80 coins. Source: Messari

Decentralized retention solutions Filecoin (FIL) gained 59% and Internet Computer (ICP) soared 52% arsenic Bitcoin blockchain request for NFT inscription vastly accrued the artifact space.

GMX rallied 34% arsenic the protocol received $5 cardinal successful transaction fees connected a azygous day.

Lido DAO (LDO) gained 34% arsenic stakers evaluated proposals to negociate the 20,300 ETH held by the firm treasury.

Leverage request is balanced contempt the generalized rally

Perpetual contracts, besides known arsenic inverse swaps, person an embedded complaint that is usually charged each 8 hours. Exchanges usage this interest to debar speech hazard imbalances.

A affirmative backing complaint indicates that longs (buyers) request much leverage. However, the other concern occurs erstwhile shorts (sellers) necessitate further leverage, causing the backing complaint to crook negative.

Perpetual futures accumulated 7-day backing complaint connected Feb. 17. Source: Coinglass

The 7-day backing complaint was adjacent to zero for Bitcoin and Ethereum, meaning the information points to a balanced request betwixt leverage longs (buyers) and shorts (sellers).

Interestingly, BNB is nary longer a top-6 cryptocurrency ranked by futures unfastened involvement arsenic investors' request for Polygon (MATIC) markets accrued by 70% successful February.

The options put/call ratio remains optimistic

Traders tin gauge the market's wide sentiment by measuring whether much enactment is going done telephone (buy) options oregon enactment (sell) options. Generally speaking, telephone options are utilized for bullish strategies, whereas enactment options are for bearish ones.

A 0.70 put-to-call ratio indicates that enactment options unfastened involvement lag the much bullish calls by 30% and is truthful bullish. In contrast, a 1.40 indicator favors enactment options by 40%, which tin beryllium deemed bearish.

Related: Bitcoin terms derivatives look a spot overheated, but information suggests bears are outnumbered

BTC options measurement put-to-call ratio. Source: laevitas.ch

Even though Bitcoin's terms failed to interruption the $25,000 resistance, the request for bullish telephone options has exceeded the neutral-to-bearish puts since Feb. 14.

Presently, the put-to-call measurement ratio nears 0.40 arsenic the options marketplace is much powerfully populated by neutral-to-bullish strategies, favoring telephone (buy) options by 2 times.

From a derivatives marketplace perspective, determination are nary signs of request from abbreviated sellers, portion leverage indicators amusement bulls are not utilizing excessive leverage. Ultimately, the likelihood favour those betting that the $1.13 trillion full marketplace headdress absorption volition break, opening country for further gains.

This nonfiction does not incorporate concern proposal oregon recommendations. Every concern and trading determination involves risk, and readers should behaviour their ain probe erstwhile making a decision.

The views, thoughts and opinions expressed present are the authors’ unsocial and bash not needfully bespeak oregon correspond the views and opinions of Cointelegraph.