Bitcoin is on an exciting trajectory, nearing a record-setting high of $73,800, thanks to a number of significant market indicators that suggest the cryptocurrency is ready to soar further. Bitcoin has managed to break free from a sluggish seven-month trend, with traders now setting their sights on targets that range between $85,000 to $160,000. This level of optimism was deeply expressed by experienced trader Peter Brandt.
Bitcoin’s rise in price managed to overcome significant resistance at $65,000 to $71,000, taken down investor sell walls and affecting the position of short traders. Market interest in Bitcoin is also evident in its 60% market dominance revealed on October 29, coming back to this position for the first time since March 2021.
Bitcoin’s open interest also reached an all-new high of $43.6 billion while it was on track to its all-time high, indicating intense interest from market participants. This is often seen as a sign of positive investor sentiment. Over the past couple of days, futures prices have surpassed spot prices as Bitcoin has been in contango, a market scenario providing lucrative basis trades.
Crypto options and derivatives analyst at HighStrike, JJ, illustrates this scenario stating, “What’s happening now is you have hedges closing in preparation for price discovery and funds with no BTC exposure using the CME to hedge their non-exposure by going speculatively long into the election.”
Meanwhile, the futures market alludes to an appetite for ‘calls’ in light of the upcoming election outcome, apparently anticipating the possibility of a Trump election victory and a subsequent cryptocurrency-friendly administration. Spot Bitcoin ETF flows have also experienced a significant surge, indicating yet another marker of market confidence in the cryptocurrency’s climb.
In conclusion, all these factors suggest that this isn’t an ordinary rally for Bitcoin. There’s strong market belief in the cryptocurrency’s capacity to reach and likely surpass all-time highs as important market indicators align in its favor.