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Bitcoin is not showing any weakness and the uptrend looks set to extend into the next few days. According to a report from Arcane Research, the cryptocurrency continues to lead the crypto rally as institutions return to the nascent sector, injecting more strength into price action.

As of this writing, Bitcoin is trading at $22,900 with sideways movement in the past 24 hours. Over the previous week, the BTC price registers an 8%. Other cryptocurrencies in the top 10 by market capitalization are seeing profits, moving with the benchmark crypto.

Bitcoin BTC BTCUSDT Chart 1
BTC price trends upwards on the daily chart. Source: BTCUSDT Tradingview

Institutions show new interest in Bitcoin

According to the report, Bitcoin climbed from its yearly low as it tightened over-leveraged short positions. Their liquidation fueled the current rally, allowing market makers to propel prices into previously lost territory.

In the past, when Bitcoin took overleveraged positions, the market weakened. Arcane Research noted otherwise, the cryptocurrency continues to show signs of strength with 7-day average trading volume rising.

Conversely, this suggests a spike in speculative appetite in the market and near-term support for further appreciation. Bitcoin trading volume for this period is averaging $1 billion per day across trading platforms excluding Binance. The latter recorded $10 billion in trading volume over the past week.

According to the report:

The prevailing high trading volumes indicate that speculative appetite has increased. While a structural short squeeze ignited strength, it is promising to see momentum being supported by persistent high spot volume.

Bitcoin BTC BTCUSDT Chart 2 AR
The total trading volume of BTC follows the upward price trend. Source: Arcane Research

In addition to the above, Arcane Research is bullish on BTC’s near term due to a spike in institutional interest in the cryptocurrency. This increase is evident in the Chicago Mercantile Exchange (CME), as shown in the chart below.

Bitcoin BTC BTCUSDT Chart 3 AR
BTC’s open interest in the CME’s rise suggests further profits as institutions return to the market. Source: Arcane Research

On this platform, the Open Interest, total positions for BTC derivatives have seen a 21% increase in the last 7 days. The report noted:

The positive trends reversing with the growing relevance of CME is a promising observation in light of CME’s important role in BTC price discovery, and it suggests that institutional flows have contributed to the recent strength.

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