Calls for Another Bitcoin Bull Run Grows as Its Open Interest Soars

Bitcoin prices eased on Tuesday as traders with short-term risk appetite locked their profits.

The benchmark cryptocurrency slipped by up to 4.56 percent to an intraday low of $25,833. Nevertheless, attempts to extend the bearish momentum faltered due to a comparatively stronger buying pressure near the $25,000-area. Since Christmas, the level held as concrete support for the third time raised expectations that it would serve as a floor for the next upside run.

Bitcoin consolidates inside a Descending Channel pattern. Source: BTCUSD on

Bitcoin consolidates inside a Descending Channel pattern. Source: BTCUSD on

Many analysts agreed that the BTC/USD exchange rate now eyes a run-up towards $30,000. A pseudonymous daytrader noted that the pair is trending inside a Descending Triangle, adding that the current technical setup could see it breakout to the upside and at least hit $29,000.

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Meanwhile, he also noted that a bearish reversal scenario would crash the price towards $23,200.

Bitcoin Open Interest

The statements appeared as Bitcoin Futures listed on the Chicago Mercantile Exchange reported a record number of outstanding derivative contracts, also known as Open Interest (OI).

Data fetched by Skew showed that OI on the CME Bitcoin Futures reached $2.6 billion, accompanied by the record-setting daily volume of $1.7 billion. That pointed to a strengthening momentum ahead, especially among institutional traders that rely on regulated exchanges like CME to gain exposure in the Bitcoin market.

CME Bitcoin Futures OI and Volume report. Source: Skew

CME Bitcoin Futures OI and Volume report. Source: Skew

Meanwhile, data analytics platform DataMish noted that the total number of outstanding derivative contracts were majority long. The long/short interest on Bitcoin futures and options was 87.37 percent long against 12.63 percent short, reflecting that most investors have a bullish bias for the cryptocurrency.

DataMish also showed a decline in the net hedged and unhedged short Bitcoin positions, suggesting that even bears expect the Bitcoin price rally to continue higher without facing major resistance levels.

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Institutional Investment Rocketing

The lack of a strong bearish bias comes in the wake of growing institutional capital inflow into the Bitcoin market. Data fetched from shows that Grayscale Investments is holding more than 607,000 BTC worth $16 billion.

Meanwhile, other mainstream corporations are raking up their Bitcoin reserves to protect themselves against fiat inflation caused by a depreciating US dollar. Just recently, Nasdaq-listed Greenpro Capital announced it would raise debts worth $100 million to buy Bitcoin, calling the cryptocurrency “a reliable future store of value.”

Grayscale Investments Bitcoin reserves. Source:

Grayscale Investments Bitcoin reserves. Source:

“The growth in capital flowing into BTC is now equivalent to Apr 2017 of the last cycle,” said Willy Woo, an on-chain analyst. “The early bull phase is over, the main phase has started; it’s come early.”

Bitcoin was trading at $26,591 at the time of this writing.

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Author: Yashu Gola

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