According to IntoTheBlock, Bitcoin experienced a significant increase in short-term traders' balances last week, indicating a resurgence in speculative demand (source: IntoTheBlock, April 28, 2025). This influx of short-term capital is a critical trading signal, as sustained growth in these balances typically precedes stronger bull trends and higher trading volumes. Traders should closely monitor this metric; if the trend continues, it supports the interpretation that the current price move is not just a relief rally but could mark the start of a broader uptrend, offering potential opportunities for swing and momentum trading strategies.

According to glassnode, the 7-day average funding rate has fallen to 0.004%, marking an 85% decrease from its December peak of 0.026%. This decline suggests a reduction in demand for leveraged long positions and a weakening speculative appetite. Without a resurgence in leverage, cryptocurrency price action may remain volatile, impacting trading strategies and market dynamics.