Bitcoin continued its winning streak from late October 20 to early trading hours of October 21, surging above $69,000, its highest level since June.
The flagship cryptocurrency asset is targeting the $70,000 mark as it seeks to surpass its previous all-time high price of $73,750.07 set on March 14.
According to CoinMarketCap data, Bitcoin’s price peaked at $69,400 around 01:20 UTC during the early trading sessions on Monday before retracting to around $69,110 at the time of this report.
This positive trend occurred alongside reports that Open Interest (OI) for Bitcoin futures contracts hit a record high of $40.5 billion.
Read More: Bitcoin Price Could Have A ‘Massive Breakout’ – Crypto Analyst
Significant BTC Price Movement Ahead
On October 21, Bitcoin and crypto data platform CoinGlass shared on X that Bitcoin’s open interest surpassed $40 billion for the first time in history after initially reaching a high of $39.41 billion on October 17.
#Bitcoin open interest exceeds $40 billion for the first time.🧐🧐🧐
👉https://t.co/b1RbJ1A35P https://t.co/O2On2tpEQj pic.twitter.com/hS0p3ZBE0o
— CoinGlass (@coinglass_com) October 20, 2024
Bitcoin open interest refers to the total number of active futures or options contracts in the market. A high BTC open interest indicates substantial activity in BTC’s futures market, reflecting increased investor interest and market participation.
As CoinGlass mentioned, the growth in open interest frequently predicts significant price movements, suggesting that Bitcoin may continue to rise in the upcoming days, particularly with the United States general election on the horizon.
Bullish Indicators Beyond Rising Bitcoin Open Interest
The rise in open interest is not the only bullish indicator for Bitcoin at the moment. Data from TradingView reveals that the moving average convergence divergence (MACD) histogram has shown a positive shift on the weekly chart for the first time since April. MACD serves as a technical analysis tool to evaluate the strength and changes of trends.
This suggests a revival of upward momentum, signifying a bullish potential for Bitcoin price’s prolonged fluctuation between $55,000 and $70,000.
Institutional adoption is another key contributor to the bullish momentum in the Bitcoin market. Coinglass data further reveals that the Bitcoin ETF market Cap hit a record high at $67.3 billion.
Bitcoin ETF Market Cap | Coinglass
Additionally, the upcoming US presidential election in November is another essential factor. Republican candidate Donald Trump has transitioned from a crypto critic to a supporter, repeating his plans for the crypto market once elected. Meanwhile, Polymarket projections currently indicate a 60.7% likelihood of the crypto-friendly Donald Trump winning, compared to 38.8% for Kamala Harris.
However, despite the excitement surrounding the increasing Bitcoin Open Interest, current BTC prices, the approaching US election, and the consistent inflow into Bitcoin ETFs in recent weeks, a minor correction seems likely before a significant upward movement.
