- The coin’s open interest hit its highest point since March, suggesting BTC could break past $73,750.
- The withdrawal from exchange rates increased while the financing rate was positive, reinforcing the bullish bias.
For the first time since it hit its all-time high of $73,570, Bitcoin [BTC] Open Interest has reached a new high. Specifically, according to this report, Open Interest amounted to $37.66 billion data from Glassnode.
Open Interest (OI) is the value of outstanding contracts on the derivatives market. If the OI falls, it means that traders are closing their positions more and more, and this could lead to a price drop.
However, an increase in OI like Bitcoin has done recently is a sign that new money is entering the market. If this continues, it could support BTC’s uptrend and lead to a higher price.
Source: Glassnode
BTC is aiming higher, supported by exchange flows
At the time of writing, BTC has changed hands for $71,200. This represented a jump of 3.89% over the past seven days. With the increasing interest in the token, there is a good chance that this is possible pass by all-time high and may reach $80,000.
Despite the bullish forecast, it is important to watch the spot trading activity on exchanges as this could also influence the price action.
One of the ways to do this is by looking at the offerings at the fairs and the offerings outside them. Additionally, the balance of some of the top exchanges could give an idea.
For example AMBCrypto found it that the historical balance of Binance and Coinbase decreased, indicating that users were withdrawing their BTC from the platforms. However, Kraken recorded a rise in BTC purchases on May 30 before the recent decline.
It seemed that many holders were buying more coins on exchanges and holding them for the long term. If this remains the case, Bitcoin could avoid selling pressure and its price could reach an all-time high before the end of June.
Source: Santiment
Traders continue to bet on a rally
On the other hand, the prediction could be overturned if supply on the exchanges starts to rise. This is because an increase in supply would mean that investors are willing to book profits. If this happens, BTC could lose $70,000.
However, traders do not seem to share the view of the price drop. This was based on funding rate data obtained from Coinglass.
According to the derivatives information portal Bitcoin’s The financing rate was positive. If the metric is negative, it means that shorts are paying longs a fee to keep their position open.
In this case, the broader sentiment is bearish.
Source: Coinglass
Read Bitcoin’s [BTC] Price forecast 2024-2025
However, the positive value of the measure indicated that long positions are dominant and the price of BTC is expected to rise. Should Bitcoin rise to $74,000 as it is now talked abouttraders with long positions would be rewarded.
This could also make way for $80,000 provided the bears fail to break the uptrend.