Following weeks of challenges breaking past the $70,000 resistance level, Bitcoin has finally managed to exceed this crucial point, currently trading close to $72,000 as of the latest update. The recent price action of the digital currency has sparked significant interest, with a 3.9% increase in value observed within the past 24 hours.
This recovery has occurred amidst a general rise in demand, as evidenced by various market indicators – an indication that investors are beginning to regain trust in Bitcoin.
For example, CryptoQuant analyst BinhDang noted the resurgence in Bitcoin demand, highlighted by the Stablecoin Supply Ratio Oscillator (SSRO).
The SSRO compares Bitcoin’s market cap to stablecoins like USDT, USDC, BUSD, and others, providing insights into the purchasing interest supported by these stable currencies. According to BinhDang, the oscillator data indicated an uptick in buying interest fueled by stablecoins, a trend observed similarly during Bitcoin’s previous market bottom in late 2022.
As of the time of writing, Bitcoin’s 90-day SSRO revealed a spike in quarterly demand, surpassing the positive 2-point threshold. As we enter November, the continuation of this heightened demand, alongside positive developments in the broader economic landscape, could further solidify Bitcoin’s position, potentially propelling it to reach new record highs.
Enhanced Fundamental Metrics Showcase Robust Growth
Besides observing Bitcoin’s price movements, fundamental metrics of the cryptocurrency are displaying renewed vigor.
Indeed, data from Glassnode indicated a rise in active BTC addresses in recent weeks, suggesting a growing number of participants rejoining the market. By late October, the count of active addresses had exceeded 760,000, a significant increase from below 700,000 just days prior.
This metric’s fluctuations underscore changing market dynamics, with the recent upsurge hinting at renewed interest, often aligning with bullish price movements. Increased activity across addresses signals higher transaction volumes on the Bitcoin network, typically a positive indicator of growing demand and market engagement.
Concurrently, Bitcoin’s Open Interest, monitored by Coinglass, surged by 8.85% to hit $42.56 billion. This uptick in Open Interest, particularly noteworthy as it escalated by 118.55% in volume to $80.43 billion, illustrated heightened involvement from Futures and derivatives traders.
An escalation in Open Interest usually signifies an influx of capital into the market, potentially fueling momentum and driving prices upwards as traders position themselves to benefit from Bitcoin’s forthcoming price movements.