What factors should be considered when adding a bullish signal for Bitcoin (BTC) that has crossed $66,000?
BTC, which broke $65,000 with net inflows from spot ETFs, briefly tested $66,900. The leaders of cryptocurrencies, which surged with dominance, naturally got investors excited. What elements should we consider for Bitcoin, which is moving step by step upwards?
Open interest reaches all-time highs.
Bitcoin’s open interest (OI)-weighted perpetual futures funding rate has reached its highest level in months. The data under discussion suggests that the current uptrend may continue in the short term. According to data from CoinGlass, the current Bitcoin OI weighted funding rate is 0.0136 percent. This level was seen on June 7, when Bitcoin briefly touched $71,950.
Positive funding rates usually indicate bullish market sentiment. However, given the volatility in cryptocurrencies, this should be treated with caution. Bitcoin open interest (OI) across all exchanges reached an all-time high of $19.7 billion on October 15, according to data from crypto data platform CryptoQuant. This indicates more capital flows into the market as well as further price movements.
Bitcoin supply on exchanges continues to decline.
According to data from CryptoQuant, Bitcoin’s ability to reach new record highs is evidenced by tracking BTC supply on-chain data on exchanges. The supply has fallen to a nearly five-year low.
As of October 15, major cryptocurrency exchanges were holding approximately $2.68 million in BTC. This represents a 20 percent decrease from the all-time high of $3.37 million in July 2021. This comes with a 55 percent year-to-date increase in bitcoin’s price.
Demand for spot Bitcoin ETFs is growing.
The continued demand for BTC has given place to institutional investors. Bitcoin This will be possible by continuing to invest in Exchange Traded Funds (ETFs).
According to data from SoSoValue Investors, the US-based spot bitcoin ETFPositive flows were recorded in four of the last seven trading days, indicating continued interest from institutional investors in these investment products. On October 14, these investment products saw the highest net inflows since June 4, bringing in more than $555.8 million.
Bitcoin RSI indicates that BTC price will rise to $233,000.
Bitcoin price has been consolidating below its 2021 high of $69,000 for the past four months, but the monthly RSI is pointing to a potential rally in the coming weeks.
Crypto analyst Bitcoindata21, in his analysis of Bitcoin on the social media platform
Bitcoin sits at strong 200-day SMA support.
Bitcoin added bullish signals by breaking above the 200-day simple moving average (SMA) on October 14. It should be noted that the price of BTC experienced a parabolic movement rising above the 200-day SMA for the past three times. Bell
This article does not contain investment advice or recommendations. Every investment and trading venture involves risk, and readers should do their own research when making decisions.
