Bitcoin Open Interest Reaches Record Levels; Traders Await BTC All-Time High
Bitcoin has been gradually edging closer to surpassing the $70,000 mark. This may come across as a bold assertion, particularly considering its recent struggle to maintain levels above $60,000.
A noticeable shift has taken place in the market dynamics, favoring the bullish sentiment and enabling upward momentum.
Over the past six days, Bitcoin has exhibited strong demand, indicating a resurgence of bullish control following a period of consolidation in the initial days of October.
In essence, it seems that BTC is rekindling the momentum witnessed back in September.
Several factors point towards the possibility of Bitcoin hitting the $70,000 milestone in the near future.
The cryptocurrency experienced considerable volatility within the last 24 hours, facing a wave of selling pressure that briefly brought it below the $68,000 threshold.
Nevertheless, a renewed surge in demand swiftly lifted the price back up, preventing further downside.
Bitcoin Bounces Back Despite Leverage Uncertainty
The extreme volatility of BTC during Tuesday’s trading session hinted at a potential shake-off of leverage positions, given that Open Interest levels reached an all-time high.
In addition, the estimated leverage ratio climbed to a new local peak.
Elevated leverage coupled with increased open interest typically paves the way for liquidations, particularly during periods of excessive optimism. However, in most instances, a subsequent correction can dampen sentiment.
Surprisingly, Tuesday’s trading session did not witness the projected outcome.
Long liquidations reached a peak of $88.9 million on September 15, yet demand swiftly rebounded, propelling the price back above $67,000.
This outcome underlined the growing confidence in Bitcoin’s potential for further appreciation. Moreover, the recent surge in demand was marked by substantial accumulation by Bitcoin exchange-traded funds (ETFs).
Recent reports indicated that Bitcoin ETFs acquired over $500 million worth of BTC within a 24-hour period.
Similarly, ETFs accumulated another $500 million in BTC on October 14, underscoring a prevailing bullish sentiment among institutional investors.
This narrative helps elucidate why the cryptocurrency is currently showing resilience against downward pressure. It also supports the notion that the bullish momentum is likely to drive Bitcoin beyond the $70,000 mark soon.
Furthermore, a significant catalyst, such as the U.S. elections, could potentially further boost BTC prices depending on the election outcome.