According to a recent Cryptoquant Quicktake post by Avocado_onchain contributor, Bitcoin (BTC) can be protected for an extended rally. The open interest of cryptocurrency in the futures market is approaching high -level history – a trend seen in previous bull markets.
The Bitcoin Open Interest continues to climb
As btc edges closer At the $ 100,000 mark, the open interest in the Futures Market is rising rapidly. A chart shared by avocado_onchain describes the current spike in open glass patterns observed in the earlier bull cycles.
The analyst noted that in recent times when the open interest of Bitcoin broke up above a previous climax – highlighting the red – it was quickly followed by a significant price improvement, as shown by the yellow arrows and green circles on the chart.
Although the current level of open interest has not exceeded the previous high, the steep upward trajectory suggests that it can do so soon. If this level is damaged, there is a strong probability that the price of BTC can follow the suit and break the current all-time high (ATH).
Funding rates remain stable
Despite the optimistic perspective, avocado_onchain warned that excessively open interest could create an over-leveraged environment, High The risk of extermination and volatility events. However, BTC funding rates remain stable today.
For those who are not studied, funding rates are a periodical payment between long and short merchants on eternal futures contracts, which means keeping contract prices aligned with the market area. In the BTC context, positive funding rates indicate more demand for Longs, while negative rates suggest more demand for shorts.
Currently, general funding rates throughout the futures exchanges show a slightly long bias without reaching the excess heat level. Noteworthy, Binance – the largest crypto exchange by trading volume – shows a brief dominance of bias, which helps to maintain market balance.
Crypto analyst Ali Martinez shouted this feeling. In a recent -only Post In X, he noted that 63.76% of Binance traders are currently positioned. It reinforces the idea that the current increase of open interest reflects the healthy long positioning rather than over -conception.
In addition, Bitcoin's modified upward momentum has Sparked Bullish signal to key on-chain indicators. The MVRV ratio, a scale that is often used to assess the sentiment in the market, began to climb – another sign of the investor's growing confidence.
Similarly, the Bitcoin Sott indicator recently Flashed Green, a historical sign that precedes the main rallies. At the time of press, BTC traded at $ 97,569, up to 0.5% over the past 24 hours.
Featured image from unsplash.com, charts from cryptoquant and tradingview.com
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