The price of Bitcoin is rising, reaching US$66,173 today; the asset appears to have reached a milestone behind the scenes.
According to CryptoQuant analyst EgyHash, Bitcoin open interest – a measure of the total number of outstanding derivative contracts – has increased. achieved a new historical record.
This development signals improved activity in the Bitcoin market and suggests strong sentiment among traders.
Breaking down the open interest ATH
In a post on the CryptoQuant QuickTake platform, EgyHash details the meaning of this new peak in Bitcoin open interest.
The analyst noted: “Bitcoin open interest has reached a new all-time high of $19.8 billion. Furthermore, funding rates reached their highest positive levels since August, indicating that much of this open interest is going into long positions.”
Notably, rising open interest and rising funding rates point to an optimistic outlook among traders, signaling their confidence in Bitcoin. continuous upward movement.
EgyHash further emphasized that this trend in the derivatives market reflects a growing inflow of liquidity and increasing attention on cryptocurrency.
Although Bitcoin’s open interest has risen, the asset’s price has also seen significant growth. upward movement. In the last 24 hours, the value of Bitcoin has increased by 5.1%, trading at $65,655, after a brief rise to over $66,000.
This price increase has been accompanied by a notable increase in Bitcoin’s overall market capitalization, which currently stands at $1.297 trillion, up from $1.175 trillion last week.
Bitcoin trading volume has also increased, doubling from less than $20 billion over the weekend to more than $40 billion today.
Bitcoin Price Outlook
Increasing market activity and price gains have led several crypto analysts to assess Bitcoin’s future trajectory. A prominent analyst, Trader Tardigrade, shared his bullish panoramarevealing that there has been a breakout in Bitcoin Stochastic.
According to Tardigrade, this break follows the same pattern as the previous cycle. The analyst added: “The breakout point indicates the local bottom at the root of a MASSIVE Parabolic RALLY. Send $BTC for $500k.”
$Bitcoin Stochastic BREAKS $BTC has the same pattern as the previous cycle. The breakout point indicates the local bottom at the root of the MASSIVE Parabolic RALLY. To send $BTC to US$500 thousand pic.twitter.com/LoJwlg2Fko
– Tardigrade Trader (@TATrader_Alan) October 14, 2024
Despite several traders’ optimistic outlook, other analysts are urging caution. RektCaptal, another well-known figure in the crypto space, suggested that Bitcoin needs to secure a weekly close above its current downtrend channel to confirm a sustained breakout.
He noted: “Bitcoin needs to close weekly above the black top of the downtrend channel to finally break out of this channel.”
Featured image created with DALL-E, TradingView chart