Key Points
- Bitcoin’s Open Interest has increased by 9% on the weekly moving average, indicating potential for price growth.
- Crypto analyst Axel Adler suggests that Bitcoin could be entering a 300-day bull run.
Bitcoin’s Open Interest, a metric indicating the total number of outstanding derivative contracts, has seen a 9% surge on the weekly moving average. This suggests there is more room for the cryptocurrency’s prices to grow.
Anticipated Bull Run
Crypto analyst Axel Adler has predicted that Bitcoin (BTC) could be on the verge of a 300-day bull run. Adler’s prediction is based on data from CryptoQuant, which shows an uptick in short-term holder profits. The analyst suggests that the bull market is currently in full swing.
Bitcoin’s prices are only 4.2% below the all-time high (ATH) of $73.7k from two months ago. Furthermore, with the halving event now behind us, buying pressure for the cryptocurrency might be trending higher.
Indicators of Growth
The 90-day Simple Moving Average (SMA) for the Short-term Holder Spent Output Profit Ratio (STH SOPR) peaked at 1.064 in January 2018 and at 1.057 in March 2021. This suggests that the STH profit peak range is at 1.064-1.057. At press time, the STH SOPR’s 90-day moving average was at 1.015, indicating potential for further gains.
Adler also noted that the 7-day moving average of the Open Interest increased by only 9% during the recent move. This is considerably lower than the 20% seen in January 2024, and the multiple 7DMA moves close to 20% observed during the 2021 run.
The Chaikin Money Flow (CMF) surged past +0.05, signifying significant capital inflow and increased demand for Bitcoin. The Fibonacci extension levels indicate that $79.2k, $88.1k, and $97k are the next resistance levels for the digital currency.
However, it is important to note that the Relative Strength Index (RSI) has not yet pushed past 70, a level that would indicate a strong sign of BTC bullish dominance near the all-time high.
