Originally published on: November 07, 2024
Bitcoin’s Open Interest (OI) has skyrocketed to record levels as the price of BitcoinBTC$74,960 reaches $75,000, signaling potential for further gains according to analysts.
Tracking the total number of unsettled Bitcoin derivative contracts like options and futures, Bitcoin OI has soared to $45.4 billion, marking a 13.3% increase since November 5th when Bitcoin surpassed its previous all-time high of $73,800 set in March, as reported by CoinGlass data.
When the number of new long positions taken by buyers or new short positions by sellers outweighs the number of closed contracts for the day, OI rises, indicating a bullish sentiment among traders.
Currently trading at $75,792, analysts speculate that Bitcoin’s price is at an ideal range for further growth. Veteran trader Peter Brandt predicts that Bitcoin is in the perfect spot in the bull market cycle, with expectations of reaching $130K to $150K by next August or September.
Amid concerns of Bitcoin being overvalued, some analysts, like Rajat Soni, believe that it is still early in Bitcoin’s adoption lifecycle, emphasizing its potential for continued growth.
Crypto analysis firm CryptoQuant supports this view by stating that Bitcoin is not yet overheated, citing the Market Value to Realized Value (MVRV) ratio, which indicates that Bitcoin may not be overbought at its current levels.
While Bitcoin’s MVRV score has increased, it remains below peak levels, hinting at further room for price appreciation. With ongoing market developments and increasing interest in Bitcoin, the potential for future gains remains optimistic.
Please note that this article does not provide investment advice, and readers are advised to conduct their own research and due diligence before making any financial decisions. For more insights on market trends and investment opportunities, subscribe to our Markets Outlook newsletter.
