Key Points
- The CME Bitcoin Open Interest has reached an all-time high, indicating increased institutional interest in Bitcoin.
- Bitcoin’s price could potentially rise towards $70,000, supported by the Realized HOLD (RHODL) Ratio.
CME Open Interest and Bitcoin’s Potential Rise
The Open Interest of the Chicago Mercantile Exchange (CME) for Bitcoin has peaked at $8.66 billion, indicating a surge in institutional interest in the cryptocurrency.
The CME is a tool for assessing Bitcoin’s exposure to regulated institutions. A rise in the CME Open Interest often signifies a shift in Bitcoin’s trend, sometimes marking the end of an upswing or signalling a bullish reversal.
At the moment, Bitcoin’s price has surpassed the $65,000 mark. The increase in CME Open Interest coincided with Bitcoin’s rise above $61,000, suggesting that the current trend is not yet at a turning point.
Other Indicators Supporting Bitcoin’s Rise
The Realized HOLD (RHODL) Ratio is another metric that indicates Bitcoin’s potential for growth. This ratio is used to identify Bitcoin’s market bottoms and tops. A low RHODL Ratio suggests that Bitcoin is nearing its bottom, while a high ratio indicates that Bitcoin may be overheated and approaching its top.
Currently, the RHODL Ratio has risen significantly. However, it has not yet reached the levels seen in September 2021 when Bitcoin exceeded $69,000. This trend suggests that there could be more room for Bitcoin to grow.
Nevertheless, traders should be cautious. If Bitcoin surpasses $69,000 and the RHODL Ratio approaches the 2021 levels, the price could undergo a correction, potentially slipping to the $58,000 region. On the other hand, if the 2021 ratio is not reached, Bitcoin could continue its upward trajectory, potentially reaching $75,000 in the short term.
The Relative Strength Index (RSI) currently reads 76.07, indicating that Bitcoin is overbought. Usually, this would trigger a retracement. However, the Social Dominance metric, which has fallen to 21.92% from over 30%, suggests that Bitcoin may not have reached its local top. If this metric continues to decline, Bitcoin’s price could continue to rise.
Traders should remain vigilant. For instance, a wave of profit booking could cause Bitcoin to plummet. However, increased buying pressure could potentially drive the price upwards.
