Originally published on: October 15, 2024
Bitcoin’s price has surged by more than 25% from its recent low, hinting at a potential rally to new highs in 2024. Onchain and technical indicators are pointing towards a continued recovery for BTC, with several key metrics supporting this bullish sentiment.
The open interest (OI) weighted perpetual futures funding rate for Bitcoin has reached a multimonth high, suggesting that the current bullish trend may persist in the short term. Positive funding rates typically indicate a bullish market sentiment, although caution should be exercised given the volatility of the crypto markets.
Data from CoinGlass shows that the current Bitcoin OI-weighted funding rate is at 0.0136%, a level not seen since June. Additionally, CryptoQuant data reveals that Bitcoin open interest across all exchanges has hit an all-time high, signaling more price movements ahead as capital flows into the market.
Despite the increase in open interest, it’s important to note that high OI does not inherently signify bullishness, as futures longs and shorts are constantly matched. However, the decrease in BTC supply on exchanges to a near-five-year low suggests that traders are opting to hold onto their coins rather than sell, further supporting Bitcoin’s potential for a 2024 bull run.
Institutional interest in Bitcoin remains strong, with continued flows into spot Bitcoin ETFs in the US. Data from SoSoValue Investors shows positive net flows into these products, highlighting institutional demand for BTC. Furthermore, technical analysis suggests that Bitcoin’s price could surge to new record highs in the coming weeks, with some analysts predicting figures as high as $233,000 by the peak of the current bull run.
Bitcoin has recently crossed above the 200-day simple moving average, a key level that has historically preceded parabolic moves in the price. This level now serves as immediate support for BTC, indicating a potential market-wide recovery. Strong support levels combined with relatively minimal resistance suggest that Bitcoin’s path to new highs is clear, setting the stage for an exciting 2024 for the leading cryptocurrency.
This article offers insights into Bitcoin’s potential price movements based on current market trends and indicators. Readers are advised to conduct their own research and consult with financial professionals before making investment decisions. Stay informed with critical insights by subscribing to the Markets Outlook newsletter for the latest updates and analysis.
