Key Highlights:

• Bitcoin is consistently priced above $105,000, with predictions of a potential rally soon.
• Futures open interest recently peaked at $75 billion, the highest ever, indicating increased speculative interest and leveraged positions.
• With low short-term implied volatility, the market indicates a build-up for Bitcoin to reach new heights within 30-45 days.

Bitcoin (BTC) is poised just below its peak, trading over $107,000, with market analysts optimistic about an upward shift in the near future.

The open interest in futures across pivotal exchanges soared to an all-time high of $75 billion on Tuesday, showcasing a surge in speculative trading activity and leveraging in the market.

Bitcoin Close-Up

Continued Market Strength

Bitcoin has stabilized above $100,000 for the past 11 days, which some traders interpret as a consolidation phase that shows strength at these price levels.

“The recent price volatility signals a consolidation phase,” noted Ruslan Lienkha, Chief of Markets at YouHodler, in an email correspondence. “We are likely positioning ourselves for another upward movement that may bring about a new record high.”

Currently trading around $107,500 on Tuesday morning, Bitcoin marked a near 1.5% increase over the last 24 hours. Additionally, Ether (ETH) and Solana (SOL) have seen gains of around 2%, while Dogecoin (DOGE), Cardano (ADA), and XRP have jumped by 3%.

Data from derivatives support this bullish sentiment with a call-to-put open interest ratio of 1.55 logged over the weekend. In tandem, premiums for out-of-the-money calls have spiked, indicating traders are preparing for a possible breakout - insights confirmed by HTX’s Chloe Zheng in a recent update.

Meanwhile, short-term implied volatility dropped to an 18-month low, around 35-40%, reflecting stable conditions even as positioning increases. “This combination of rising enthusiasm and reduced volatility usually hides the accumulation of excess leverage,” HTX Research stated.

Alex Kuptsikevich of FxPro shared in an email that the makeup of market participants includes a mix of retail investors and trend-chasing traders, remaining undeterred by broader macroeconomic uncertainties or recent security issues among exchanges.

He further explained, “Forthcoming price movements will largely depend on shifts in global risk appetite. If the $107,000 resistance is breached, we could anticipate a return to the uptrend, potentially reaching prices around $115,000.”