Rally, Rinse, Repeat

This week’s Market Insights will be a bit shorter than usual given we just released our latest monthly chartbook (”When It Rains, It Pours”), which provides more in-depth analysis of the crypto market, BTC market structure, key levels, and notable trends we’re watching across the space. There are a few interesting things on our radar though, so we couldn’t help but put together some thoughts as we look to cap off another rollercoaster of a week.

There’s no better place to start than the recent BTC price rally that’s been on everyone’s mind over the last 48 hours. Last week, we made note of a very interesting market dynamic unfolding, specifically on the 28th of February. In summary:

• Once again, we saw price selling off while funding shifted negative and incremental OI increased, which is typically a sign that sellers and new shorts are trying to force price lower. The result was similar to the February 24th squeeze, when we saw BTC’s price jump from $40K to $45K.

• We also noted that, sinc