Key Points
- Bitcoin’s bullish sentiments are high as Futures and Options Open Interest reach a monthly peak.
- Despite recent surges, Binance investors question the sustainability of Bitcoin’s current uptrend.
Bitcoin [BTC] experienced a 6.33% surge over the past day, reaching a one-month high of $93,756. This surge coincided with extreme bullishness among investors.
The Put/Call Open interest currently stands at 0.59, indicating a bullish sentiment among traders. This sentiment is reflected in the $19.3 billion in Call Open Interest, compared to $11.5 billion in put open interest.
Options Interest and Futures Open Interest
Options interest also saw a significant increase, going from $28.5 billion to $30.7 billion within a day. This is the highest level since March. Similarly, Futures Open Interest rose from $36.2 billion to $38.6 billion, gaining $2.4 billion in less than 36 hours.
Despite this bullishness, Binance investors are questioning the sustainability of Bitcoin’s current uptrend. Binance’s Funding Rates have turned negative, standing at -0.006, despite the upward price momentum.
Historical Instances and Current Market Conditions
Historically, low Funding Rates have been associated with significant price movements. For example, on October 16, 2023, and September 9, 2024, when BTC surged significantly.
The current rally is likely to continue as it is backed by massive demand. Exchange Netflow has remained negative over the past day, indicating strong accumulation and more buyers in the market than sellers.
Short-term holders (STHs) are now back in profit, with their realized price at $91K, while Bitcoin (BTC) trades above $93K. If current conditions persist, BTC could reclaim $96K, setting the stage for an attempt at $100K.
However, if STHs decide to sell after a month underwater, BTC may correct and retrace to $87K.
