Bitcoin [BTC] has once again surpassed the $65k resistance threshold, having recently dipped below it. This latest surge in price likely ignited a wave of optimism among investors.
Even more encouraging is the fact that a crucial metric has hit a peak not seen in months, indicating a surge in positive sentiment surrounding the primary cryptocurrency.
Bitcoin Sets New Records
Over the past few days, BTC has shown a bullish trend, with its value climbing by more than 4% in the last week.
Currently, the dominant coin is being traded at $65,561.08, boasting a market capitalization exceeding $1.3 trillion.
As the price surged, BTC’s trading volume also saw an uptick, setting the stage for a potential bull run.
Concurrently, BTC Futures have reached unprecedented levels, with the Funding Rate hitting a multi-year peak.
Higher Funding Rates typically signify increased capital inflow into the network, signaling a prevailing bullish sentiment.
Furthermore, a prominent crypto analyst named Ali recently shared a tweet highlighting another significant development in the futures domain.
According to the tweet, BTC’s Open Interest across various exchanges has just reached a new all-time high of $19.75 billion, a surge often foreshadowing major price fluctuations as more funds come into play.
Thus, CryptoCrypto intends to delve into BTC’s on-chain data to ascertain if this newfound interest will indeed translate into a sustained price surge.
What Lies Ahead for BTC?
An analysis based on Glassnode’s data shows that investors’ interest in BTC is mirrored in increased accumulation.
Transitioning from 0.2 in late September to 0.6 in October, BTC’s accumulation trend score points towards a growing buying pressure when nearing 1.
Nonetheless, not all signals are favorable for Bitcoin.
Observations from CryptoCrypto’s examination of CryptoQuant’s data reveal a spike in BTC’s net deposits on exchanges compared to the seven-day average, suggesting escalated selling pressure recently.
An uptick in selling pressure often precedes a potential price correction.
Hence, CryptoCrypto has scrutinized BTC’s daily chart to gain insights into the expected trajectory. While BTC successfully converted a resistance level into support, a slight dip in the Relative Strength Index (RSI) indicates vulnerability in holding the support position.