bitcoin has broken its all-time highs again, reaching a new high of $79,780. This is the fourth time in just five days that btc has set a record, firmly establishing a bullish phase that began when it broke its previous all-time high in March. Market optimism increased following Donald Trump's recent victory in the US elections, adding momentum to bitcoin's rise.
Adding to the bullish sentiment, IntoTheBlock data shows a notable development in btc open interest for perpetual swaps, with its ratio to market cap reaching a multi-year high. This metric often indicates increased market interest and potential future volatility as traders increase leverage to capture profits in the current trend.
The next few days will be critical as investors continue the momentum and assess the potential for further bullish movement. If bitcoin maintains its position above these levels, the bull market could intensify, which could attract even more institutional and retail interest towards the asset.
bitcoin's bullish phase confirmed
bitcoin has entered a confirmed bullish phase, supported by both price action and compelling on-chain data. x.com/intotheblock/status/1855298108550263023″ target=”_blank” rel=”noopener nofollow”>IntoTheBlock recently reported that open interest in perpetual swaps has reached its highest ratio to market capitalization since the FTX collapse. This spike highlights intense trader interest in btc derivatives as participants increasingly speculate on bitcoin price movements through leveraged positions.
A high open interest to market capitalization ratio can often indicate higher market expectations of significant price movements. In the case of btc, this increase in derivatives trading suggests that traders anticipate notable volatility, whether up or down. The amplified leverage associated with high open interest means that even small price changes can generate substantial profits or losses for these traders, intensifying btc's short-term volatility.
If the price continues to rise in line with traders' expectations, this elevated open interest could fuel a powerful bullish move as leveraged positions gain momentum. However, this scenario carries risks: if btc were to change direction, many leveraged positions could face liquidation.
This would force traders to close their positions at a loss, which could trigger a cascade of liquidations that could temporarily cause the price to drop sharply. As a result, the coming weeks could bring significant gains and increased volatility as bitcoin's bull phase unfolds.
btc Test Price Discovery
bitcoin is up more than 19% since Monday and is on track to hit its highest weekly close ever. The price action has confirmed an uptrend after consistently surpassing all-time highs four times in the last five days, indicating strong momentum. btc now appears too strong to pull back significantly any time soon. However, with growing speculation and high-leverage trading entering the market, volatility could intensify in the coming days.
A pullback to the $73,800 level would maintain the bullish structure. This price represents a key resistance level that was recently broken and could now act as strong support. If bitcoin can hold above this level after a pullback, it would solidify the uptrend and provide the fuel needed for a further rise.
While the bullish momentum is undeniable, increased speculative activity and leverage could lead to sharp price swings. If the market faces a pullback, it will be important to see if key support levels like $73,800 hold. This would confirm that the trend is intact and allow bitcoin to continue its upward trajectory without losing significant ground.
Featured image of Dall-E, TradingView chart
