With the Bitcoin price rising, one analyst has focused on X and highlighted the current state of play. In a afterthe analyst thinks the world’s most valuable coin is approaching ‘breakout velocity’, with price action diverging from past candlestick arrangements. This is usually the case, especially when prices are approaching record highs.
Will Bitcoin Rip Past $70,000 in the Coming Days?
The analyst notes that a normal BTC cycle, at current prices and given the coin’s rise in recent weeks, would typically have seen a pullback. The correction would then be followed by a longer period of consolidation, often lasting at least six months.
However, as there is a clear deviation looking at the price action on the monthly chart, the analyst is confident that Bitcoin is about to take off. The resulting rally would occur at ‘breakaway speed’, the coin would easily extend gains and move past all-time highs.
Bitcoin is firmly in an uptrend in terms of spot prices, looking at the events on the daily chart. Specifically, Bitcoin is trading above $57,200 at the time of writing, recording new highs for 2024. Over the past day, the coin has broken above key resistance levels, easily breaching $53,000 and later $55,000 in a continuation of the buying trend.
Rising funding rates and open interest as institutions double down
Amid the surge in interest, stock market data shows that there has been a spike in annualized funding rates and open interest across multiple platforms, allowing trading of perpetual Bitcoin futures. Data from Coinglass shows that the funding rate in Binance is now over 0.0686%. The same has been observed with open interest, which is the case now stands at over $6.2 billion on Binance.
Changes in open interest and funding rates are leading indicators that can be used to gauge market sentiment. Normally, rising open interest and funding rates indicate increasing bullish sentiment, especially among leverage traders. In this scenario, the possibility of prices maintaining an upward trend remains high.
Confidence among traders is exceptionally high. This is fueled by recent institutional developments, macro factors and expectations ahead of the upcoming halving. For context, the ten approved Bitcoin Exchange-Traded Funds (ETFs) in the United States have since received billions.
Observers now worry that at this rate, and ahead of Bitcoin’s halving, a supply shock crisis could emerge. The concern is that after April, the number of coins released will be far less than the number gobbled up by institutions. BTC prices are likely to rise from this, which will be out of reach for ordinary people.
Feature image of DALLE, chart from TradingView
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