Bitcoin is currently digesting the gains of the past few weeks, and after a consolidation period, the bull market may continue.

Matrixport released a daily chart stating that Bitcoin is currently digesting the recent surge in the past few weeks. During this time, the open interest in futures skyrocketed from $18 billion in October to $29 billion, an increase of 50%, while the Bitcoin funding rate surged from over 10% to a peak of over 80%. Historical data shows that after such rapid positioning, there is usually a brief consolidation period, after which the bull market may continue.

This pattern may occur again, especially during the quieter trading period around the Christmas holidays. Traders are now turning their attention to the new year, wondering if there will be new inflows of capital to drive prices up and reignite the upward momentum.