- The rise in CME Open Interest could fuel Bitcoin’s continued uptrend.
- The RHODL ratio climbed, but the price of BTC could rise towards $70,000.
The CME Bitcoin [BTC] Open Interest has reached an all-time high of $8.66 billion, AMBCrypto found. CME stands for Chicago Mercantile Exchange.
For context, the CME is used to measure Bitcoin exposure to regulated institutions. Therefore, the latest milestone implied that institutional interest in the currency has increased.
Source:
Historically, the rise in the CME signals a period for a change in BTC’s trend. In some cases, this marks the end of BTC’s rebound. Other times it signals a bullish reversal, pushing the price higher.
At the time of writing, Bitcoin’s price had broken through the $65,000 mark.
Time for Bitcoin to shine
Interestingly, the rise in CME Open Interest occurred when the coin moved above $61,000, where it stuck for a while.
With this trend, one can assume that BTC’s ongoing trend has not yet reached a turning point where it runs out.
Recently, AMBCrypto explained how the coin price could reach $70,000. But this Open Interest and that article were not the only signal suggesting that BTC could end the week at a higher value.
Another metric that supported the increase was the Realized HOLD (RHODL) Ratio.
This ratio can be used to time Bitcoin’s bottoms and tops. If the RHODL ratio is low, it means Bitcoin is close to the bottom. However, a high ratio suggests that Bitcoin could overheat and get close to its top.
At the time of writing, the ratio is significant increased. But the jump had not yet been achieved: it was around September 2021 when Bitcoin crossed $69,000.
With this trend, BTC could have more upside potential.
However, traders may need to be wary: if BTC crosses $69,000 and the RHODL ratio approaches the 2021 value, the price could undergo a correction.
Should this be the case, Bitcoin’s price could fall to the $58,000 region. Conversely, not hitting the 2021 ratio could drive BTC higher and $75,000 could be an option in the near term.
Is there more to come?
Furthermore, AMBCrypto looked at the Relative Strength Index (RSI). At the time of writing, the RSI value was 76.07, indicating that Bitcoin was overbought. Normally this should cause a retracement.
But signals of Social Dominance, in other words.
At the time of writing, social dominance, previously above 30%, had fallen to 21.92%. This decline implied that the share of discussions about BTC had decreased.
In terms of price action, this suggested that the coin had not reached the local top.
Source: Santiment
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If the benchmark continues to decline, Bitcoin’s price action could continue to rise. Nevertheless, traders may need to be careful. For example, if a wave of profit booking occurs, BTC could take a nosedive.
However, increased buying pressure could drive the price north.
