Bitcoin Nearing 'Escape Velocity' That Will Take Prices Above $70,000: Analyst

With bitcoin price rallying, one analyst opted for X, highlighting the current bullish state of affairs. in a mail, the analyst believes the world's most valuable currency is approaching “escape velocity,” with the price action deviating from the candlestick agreements of the past. This is often the case, especially when prices approach all-time highs.

Will bitcoin surpass $70,000 in the coming days?

The analyst notes that, at current prices and considering how the coin has been rising in recent weeks, a normal btc cycle would normally have seen a pullback. The correction would then be followed by a long period of consolidation, often lasting at least six months.

However, since there is a clear deviation, looking at the price action on the monthly chart, the analyst is convinced that bitcoin is about to take off. The resulting rally would be at “escape velocity,” the coin would easily extend gains, surpassing all-time highs.

bitcoin is firmly in an uptrend in spot rates, looking at the events on the daily chart. Specifically, bitcoin is trading above $57,200 at the time of writing, recording new highs in 2024. Over the past day, the coin broke through key resistance levels, easily surpassing $53,000 and then $55,000 in a continuation of the buying trend.

Rising Funding Rates and Open Interest as Institutions Double Down

With growing interest, exchange data shows that there has been an increase in annualized funding rates and open interest across multiple platforms, enabling bitcoin perpetual futures trading. Coinglass Data btc” target=”_blank” rel=”nofollow”>sample that the funding rate on Binance is now above 0.0686%. The same thing has been observed with open interest, which now it's found to over $6.2 billion on Binance.

Changes in open interest and funding rates are leading indicators that can be used to gauge market sentiment. Generally, rising open interest and funding rates suggest growing bullish sentiment, especially among leveraged traders. In this scenario, the possibility of prices maintaining the upward trend remains high.

Confidence among traders is exceptionally high. It is driven by recent institutional events, macroeconomic factors and expectations prior to the imminent halving. For context, the ten spot bitcoin exchange-traded funds (ETFs) approved in the United States have since received billions.

Observers are now concerned that at this rate, and ahead of the bitcoin halving event, a supply crisis will occur. The concern is that after April, the number of coins released will be much less than those devoured by institutions. btc prices are likely to recover from this, which will be out of reach for ordinary people.

Featured image of DALLE, TradingView chart

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