Bitcoin price rally likely to continue with open-interest hitting five-month peak

  • Bitcoin open interest on top crypto derivatives exchanges climbed to $9.7 billion, hitting the highest level since FTX exchange collapse in 2022. 
  • A surge in open interest at a time when BTC price climbed above $30,000 is considered a bullish sign for the asset. 
  • Experts note that Bitcoin price needs strong bid side support to absorb selling pressure in the coming weeks to sustain BTC’s recent gains.

Bitcoin open interest across derivatives exchanges climbed above the $9.7 billion level based on data from crypto intelligence firm Coinalyze. Rising open interest coupled with the recent rally in the asset’s price indicates that the asset’s gains are likely sustainable. 

Also read: Bitcoin price rallies to $30,000: China is likely warming up to BTC, here’s what to expect

Bitcoin price crosses $30,000 with massive spike in open interest

Open Interest in Bitcoin hit a five-month peak, moving past $9.7 billion for the first time since the FTX exchange collapse. On derivatives exchanges, Open Interest is the total number of outstanding derivatives contracts, options or futures that have not been settled yet. Analysts keep track of all open positions in an asset through this metric. 

Interestingly, Bitcoin price climbed past a key psychological level, $30,000 alongside the spike in Open Interest. This supports the bullish theory for the asset’s price. 

Bitcoin Open Interest across derivatives exchanges

Bitcoin Open Interest across derivatives exchanges 

Of the $9.7 billion in BTC OI, $9 billion is from Perpetual contracts and $720.3 million from Futures. 

Bitcoin’s explosive move ahead of a key US data release raised questions on the sustainability of the asset’s price rally. Analysts identified what the asset needs to sustain its recent gains and make strides in a bull market. 

What does Bitcoin price need to sustain its gains and climb higher

Crypto analysts at the YouTube channel DataDash identified the range between $28,000 to $32,000 as a key price range for Bitcoin. BTC’s run up to $30,000 places the asset in this range. 

Experts believe between $28,000 and $32,000 Bitcoin is in a range of contestment and chop and needs adequate bid side support to absorb selling pressure and the market order flow, allowing the asset to kick-off another bull market. 

BTC market cap dominance

BTC market cap dominance 

The analyst argues that the most useful indicator to ascertain whether Bitcoin price will sustain its uptrend is the Market Cap Dominance indicator. The macroeconomic outlook and the shifting sentiment among holders is key to Bitcoin’s performance and whether the asset breaks past resistance at 48.90% on the chart above.

The expert’s opinion is that the upcoming US data release and the shifting macroeconomic outlook could influence Bitcoin’s dominance and likewise its price rally. BTC has rallied past the $30,000 level in a macro risk-on environment, the largest asset by market capitalization could therefore continue its uptrend in the short-term.  

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content

Recommended Content

Editors’ Picks

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH? Premium

Why is Pepe meme coin rallying? What’s next after PEPE’s ATH?

Pepe (PEPE) price shows signs of continuing its uptrend, but it might come after a correction. This short-term pullback could be used by sidelined buyers to accumulate PEPE for the next leg up.

More Pepe News

Grayscale launches new investment vehicles for NEAR and STX

Grayscale launches new investment vehicles for NEAR and STX

Grayscale announced the creation and launch of Near Protocol (NEAR) and Bitcoin Layer 2 Stacks (STX) single asset trusts. The company stated that the launch is an attempt to satisfy increased investors' demands for diversified crypto-asset exposure.

More Cryptocurrencies News

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum on the brink of 75% rally as SEC approves ETH ETFs

Ethereum (ETH) bounced back after a brief dip on Thursday as the Securities & Exchange Commission (SEC) approved spot ETH ETFs in a shocking U-turn. US lawmakers had earlier penned a letter to Chair Gary Gensler, urging him to approve the ETFs.

More Ethereum News

XRP set for rally after Coinbase listing in New York

XRP set for rally after Coinbase listing in New York

Coinbase's Chief Legal Officer announced the listing of XRP for its New York clients. XRP was initially removed from the exchange in January 2021 due to an SEC lawsuit on claims of the asset breaking securities regulation.

More Ripple News

Bitcoin: Is BTC out of the woods? Premium

Bitcoin: Is BTC out of the woods?

Bitcoin price shows signs of continuing its uptrend, providing a buying opportunity between $64,580 to $63,095. On-chain metrics forecast a bullish outlook for BTC ahead. If BTC clears $70,000, the chances of resuming the uptrend would skyrocket.

Read full analysis