Open interest in Bitcoin reaches record high $33B
Open interest in Bitcoin reaches record high $33B
This week, Bitcoin struggled to close above the crucial psychological level of $70,000, though these attempts have so far been unsuccessful.
Consequently, traders with long positions faced significant liquidations, with long liquidations totaling $50 million on October 26.
Despite this, open interest reached a record high of $32.9 billion, demonstrating investor confidence in Bitcoin's continued growth. This sentiment is also reflected in the substantial amount of Bitcoin withdrawn from exchanges — according to CryptoQuant, over 15,000 BTC was withdrawn on October 22, marking the largest single-day outflow in a month. This movement underscores investors' long-term confidence as Bitcoin approaches key resistance points close to its all-time high.
The accumulation trend often precedes a rally, as fewer sellers are available to exert downward pressure on the asset's price. Currently, Bitcoin is trading below $67,000, roughly 10% below its all-time high of $73,800.
At this level, BTC is also nearing a potential breakout from a descending wedge pattern, which typically precedes significant price movements. A breakout from this pattern could set Bitcoin up for a strong rally toward the $73,000 mark.
On the other hand, if Bitcoin fails to maintain this level, it risks a pullback to $65,000, which could delay its further growth. The wedge pattern suggests potential gains of up to 27%, which would set a target price for Bitcoin at $88,185. However, the immediate goal for BTC remains to surpass its all-time high of $73,800, as this would strengthen its upward trajectory.
Read also: BTC net taker volume signals bullish shift
