In the past two months, the introduction of spot Bitcoin ETFs by companies such as BlackRock and Fidelity has partially influenced market sentiment.
Open interest in Bitcoin futures contracts on centralized platforms has recently reached an annual peak following the latest price surge, i.e. $22.9 billion, marking the highest level since November 2021.
As anticipated, open interest in Bitcoin futures traded on centralized platforms recently reached a new yearly high, marking levels not seen since November 2021 and indicating a significant increase in trading activity around the leading cryptocurrency.
As reported by GlassCoin, overall open interest in Bitcoin futures hit $22.9 billion on Monday, the highest level since Q4 2021, thus significantly approaching the peak of around $24 billion reached. in that period.
What Does the Rise of Open Interest in Bitcoin Futures Mean?
Since the first day of 2024, open interest in Bitcoin futures has grown more than 30%, in line with the Bitcoin price surge at $52,300, up 23% year-to-date, returning to levels seen for the last time in December 2021.
At the same time, open interest for Ethereum futures reached $10.5 billion, recording a 50% increase since the beginning of 2024. Ether trading price reached $2,900, highlighting a gain of over 27% since beginning of the year.
Open interest is a metric that measures the total value of all outstanding or “unsettled” Bitcoin futures contracts on exchanges; Therefore, it constitutes an indicator of increasing market and trader sentiment activity towards a particular asset.
Recently, ETFs have attracted over $4 billion in inflows in a short period, demonstrating investor interest in the broader cryptocurrency-based derivatives market.
Bitcoin Marks New Yearly High of $52,800: Is It Preparing for Another Rise?
The price of Bitcoin (BTC) recently reached a new yearly high of $52,800 on February 15, but has shown a slight decline since then. However, BTC showed a recovery on February 15, once again approaching its yearly high. But can he overcome it?
The weekly outlook reveals an increase in the price of BTC since the beginning of 2023, with a notable increase in October leading to a high of $49,050 in January 2024. The price subsequently recorded a drop, touching i $38,500, validating the level of 0.618 Fib retracement as resistance.
Despite the brief drop, Bitcoin regained ground, generating four weekly bullish candles and closing at $52,900 last week, its highest value since 2021. The weekly RSI analysis, though, shows bearish signs. While the RSI is rising, it has also created a bearish divergence, often indicative of impending trend reversals.
Industry experts such as CryptoMichNL and CrediBULL Crypto are positive about the future trend of BTC. CryptoMichNL predicts that the BTC price will reach $100,000 before falling, while CrediBULL Crypto suggests a possible retest of $50,000 before a further rise. The analyst warns, however, that despite the possibility of a test at $50,000, he remains optimistic about the local highs, expecting a solid range to form between the new highs and the green zone.
In conclusion, wave analysis suggests that BTC may experience an additional high before a correction. The most likely level for the peak of this upward move is estimated at $56,000, determined by the 1.61 Fib external retracement resistance level from the previous drop. This value represents almost a 7% increase compared to the current price. Subsequently, a correction may occur within the framework of the fourth wave.
By Audy Castaneda
