Summary
⚈ BTC price nears $100,000, with traders anticipating a potential bullish breakout.
⚈ Network activity spikes, and loss-held supply drops, signaling reduced selling pressure.
Bitcoin (BTC) open interest, a metric that tracks the number of open derivatives positions, has reached the highest level it has been at since February.
At present, almost 35 billion positions — 34,943,365,869, to be exact, are open, per data retrieved by Finbold from market analysis platform CryptoQuant on Thursday, May 8.
The uptick indicates a significant degree of speculative interest among traders, in spite of (or perhaps because of) Bitcoin’s recent price action.
The leading cryptocurrency was changing hands at a price of $99,450 at press time, after having made a 2.13% move to the upside within the last 24 hours.
Bitcoin open interest hints that crucial resistance will be retested soon
Breaching the key resistance at the psychologically important $100,000 mark would serve as a strong bullish confirmation, potentially sending BTC prices parabolic in the weeks to come.
In tandem with the recent move to the upside, Bitcoin network activity recently hit a 6-month high. As the cryptocurrency’s price has increased, the percentage of supply being held at a loss has also more than halved, down to 11% as of early May from 25% in early April — a development that tends to reduce selling pressure.
A decisive move above $100,000 would also cause significant liquidations on the short side, a development that would most likely drive prices even further up. With a plethora of bullish signals in play, Bitcoin, which has outperformed the S&P 500 in recent weeks, seems set to breach resistance and enter a bullish leg.
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