Gate Research: ETF inflows and short covering resonate, BTC and ETH enter a trend release phase.

PANews reported on March 20th that Gate Research released its latest quantitative analysis report, indicating that after deleveraging in early March, the crypto market is transitioning from a period of low volatility consolidation to a phase of structural repair and trend release. BTC was the first to stabilize its price center, followed by ETH, which saw significant gains over the past two weeks, with increases of approximately 2.2% and 9.5% respectively, representing a recovery of 15.8% and 24.9% from its low to its high. Derivatives and capital structure data show that this round of gains was mainly driven by ETF fund inflows and short covering, with the overall market still experiencing relatively moderate capital participation.

The report shows a slight increase in BTC perpetual holdings, while ETH saw a significant expansion, further validating BTC as a trend anchor and ETH as a resilience amplifier. Quantitatively, the 4-hour moving average breakout strategy has proven stable in the current environment, with the combination of narrower compression thresholds and a higher risk-reward ratio proving more advantageous. The report suggests that as the market transitions from sideways consolidation to a trend release phase, trading logic is shifting from range-bound thinking to trend following. If ETF funds continue to flow in, funding rates remain moderate, and the liquidation structure remains dominated by short covering, the recovery in BTC and ETH is likely to continue.