Bitcoin’s bullish trend continues as Futures and Options Open Interest hit a monthly high, prompting speculation about the possibility of BTC reaching $100,000 once more. The cryptocurrency saw a 6.33% surge in price to hit a one-month high of $93,756, with investors displaying extreme bullishness, as evidenced by the Put/Call Open Interest ratio of 0.59.
The ratio indicates that traders are more bullish than bearish, with call contracts outnumbering put contracts. Notably, Call Open Interest stands at $19.3 billion compared to $11.5 billion in put open interest, showing a preference for calls. Options interest also saw a significant increase from $28.5 billion to $30.7 billion within a day, marking the highest level since March.
Furthermore, Futures Open Interest also rose from $36.2 billion to $38.6 billion, demonstrating a $2.4 billion increase in less than 36 hours. The question now arises whether Bitcoin’s current uptrend will last, with Binance investors displaying skepticism despite the positive momentum. Negative Funding Rates on Binance, historically associated with significant price movements, suggest the potential for a continued rally.
Analysis shows that when Funding Rates dip to low levels, prices tend to rise due to a short squeeze causing shorts to cover their positions and add to buying pressure. This, in turn, leads to a price rally fueled by increased demand. Exchange Netflow data indicates strong accumulation as outflows exceed inflows, signaling bullish sentiment and potential for further growth in the market.
Short-term holders (STHs) are currently in profit with BTC trading above $93,000, while long-term holders (LTHs) remain steady. The market shows strength for further growth as STHs realize profits, reducing the likelihood of a panic sell-off. With conditions remaining favorable, BTC could aim for $96,000 and potentially reach $100,000, although a correction to $87,000 is possible if STHs decide to sell after being underwater for a month.
