As October progresses, Bitcoin (BTC) has rebounded by over 25% from its September low of $52,546, setting the stage for a potential rally to new all-time highs. Market indicators suggest Bitcoin could surpass $75,000 soon.
Bitcoin Open Interest Reaches Record High
Bitcoin’s open interest (OI) in perpetual futures has surged to a multi-month high. This signals continued bullish sentiment among traders. Data from CoinGlass shows the current OI-weighted funding rate is at 0.0136%, a level not seen since June 7, when Bitcoin briefly touched $71,950.
However, it’s essential to remember that high open interest can increase market volatility. While rising OI highlights growing liquidity, it doesn’t guarantee a specific price direction, as both long and short positions are always matched.
Bitcoin Supply on Exchanges Hits a 5-Year Low
Supporting the bullish outlook is Bitcoin’s decreasing supply on exchanges. Data from CryptoQuant shows that centralized exchanges now hold around 2.68 million BTC, a significant drop from the July 2021 high of 3.37 million BTC. This decline suggests that more investors are holding Bitcoin rather than selling, adding upward pressure on the price.
Institutional Demand for Bitcoin ETFs Rises
Institutional interest in Bitcoin continues to grow, driven by demand for spot Bitcoin exchange-traded funds (ETFs). Data from SoSoValue Investors shows that U.S.-based spot Bitcoin ETFs have seen positive inflows in four of the last seven trading days. On October 14, these ETFs recorded over $555.8 million in net inflows—the highest since June.
Nate Geraci, President of ETF Store, highlighted this surge in a recent post, noting that Bitcoin ETFs have amassed nearly $20 billion in net inflows over the past 10 months, far exceeding pre-launch expectations.
Can Bitcoin Hit $233,000? RSI Suggests a Bullish Future
Bitcoin’s price consolidation below its 2021 all-time high of $69,000 may be temporary. According to analyst Bitcoindata21, Bitcoin’s monthly Relative Strength Index (RSI) indicates a potential rally in the coming weeks. Historical highs in monthly RSI readings often correspond with Bitcoin’s price peaks. The analyst predicts that BTC could hit $233,000 during this bull run, possibly as early as the first quarter of 2025.
Bitcoin Finds Strong Support at the 200-Day SMA
Bitcoin recently broke above the crucial 200-day simple moving average (SMA), currently sitting at $63,335. This level has historically triggered parabolic price moves. Data from IntoTheBlock shows strong support in the $61,770 to $63,728 range, where 2.5 million addresses purchased 1.1 million BTC.
Given this solid foundation, Bitcoin’s path of least resistance appears to be upward, signaling the potential for continued gains in the coming weeks.
