By Yasin Ebrahim

Investing.com – Bitcoin rose 4% Monday as dip-buying prevailed following its recent pullback, and the latest data on its blockchain suggest traders should buckle in for further swings before the popular crypto makes record highs again.

The stock rose 4.3%, to $63,041 and traded close to the Oct. 20 record of 66.967.1.

Although bitcoin funding rates (or the cost to hold long positions on futures traded on exchanges) have cooled somewhat after the pullback of $60,000, they remain near their all-time highs.

It is not unusual for high funding rates to be followed by market selling in order to lessen the excesses or leveraged betting on BTC. Higher funding rates were the catalyst for both the May slide and the May bloodbath.

“Funding rates are at the same levels that were observed prior to September’s early flush out. Glassnode’s weekly on-chain report Monday reported that futures open rates remain at near record highs. This means there remains a potential for further downside in order to get even more leverage.

Any downturn will however be met with great demand. The on-chain data that details the key developments within Bitcoin’s network and points to a slowerdown in profits taking by long-term investmentists, shows that there is no downside.

“Long-term holder spending behaviour [… ]It appears that conviction returns are slowing down during [the recent pullback]Glassnode stated that.

Over the past two weeks, long-term holder supply has fallen by approximately 39.5000 BTC. It said that “already, starting to recover” indicates that the “vast majority” of coinholders are still waiting and expecting higher prices.

A sign of continued healthy demand can be seen in crypto markets, where a record $1.47 Billion of capital poured into digital asset investments last week. CoinShares reported Monday.

BTC’s total market capital grew to $1.186 trillion. This brings it to $2.614 Trillion, which is just below the all-time high of $2.681 TRILLION.