Currently, Bitcoin is digesting the surge of the past few weeks. During this time, futures open interest surged 50% from $18 billion in October to $29 billion. At the same time, Bitcoin funding rates surged from 10%+ to a peak of 80%+. Historical data shows that this rapid position building is usually followed by a short consolidation period, after which the bull run may continue.

This pattern may reappear, especially with thin trading volume during the Christmas holiday. Traders are now looking to the new year to see if there will be new inflows to push prices higher and reignite the rally.