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Bitcoin‘s recent price surge is attributed to movements in the futures markets, according to on-chain analyst Willy Woo. Woo, who boasts a following of over a million on Twitter, has given his insights into this price trend using Glassnode’s data.
Woo’s analysis indicates that the price changes are mainly driven by demand from the calendar futures markets, a tool typically used by professional and institutional investors. He further suggests that this demand continues to grow, pointing towards the early stages of another potential price squeeze.
However, Woo also warns of overbought calendar demand according to statistical analysis. “It’ll be critical to watch for a decrease in basis. It could dissipate quickly, impacting the bullish price action,” he cautions. He explains that ‘basis’ in this context refers to the cost of maintaining a long position and serves as a quantifiable measure of demand from calendar futures.
At time of writing, Bitcoin is up % in the last 24 hours and is trading at $31,028 according to CoinMarketCap data.