Bitcoin has broken its all-time high again, reaching a new peak of $79,780. This marks the fourth time in just five days that BTC has set an all-time high, firmly establishing a bullish phase that began when it broke its previous all-time high in March. Market optimism surged following Donald Trump’s recent victory in the US elections, boosting Bitcoin’s rise.
Complementing the bullish sentiment, IntoTheBlock data shows a notable development in BTC’s open interest in perpetual swaps, with the ratio to market cap reaching a multi-year high. This metric often indicates increased market interest and potential future volatility as traders increase leverage to capture profits from the current trend.
The coming days will be critical as investors monitor momentum and assess the potential for further upside. If Bitcoin maintains its position above these levelscould intensify the bull market, potentially driving even more institutional and private interest in the asset.
Bitcoin bullish phase confirmed
Bitcoin has entered a confirmed bullish phase, supported by both price action and compelling on-chain data. IntoTheBlock recently reported this that open interest in perpetual swaps has reached the highest ratio to market capitalization since the collapse of the FTX. This spike highlights traders’ intense interest in BTC derivatives as participants increasingly speculate on Bitcoin’s price movements through leveraged positions.
A high open interest to market cap ratio can often indicate increased market expectations for significant price movements. In the case of BTC, this rise in derivatives trading suggests that traders expect significant volatility, both up and down. The amplified leverage that comes with high open interest means that even small price changes can lead to significant gains or losses for these traders, amplifying BTC’s short-term volatility.
If the price continues to rise in line with traders’ expectations, this increased open interest could trigger a powerful upward move as leveraged positions gain momentum. However, this scenario comes with risks: if BTC were to change direction, many leveraged positions could face liquidation.
This would force traders to close their positions at a loss, potentially triggering a cascade of liquidations that could temporarily depress the price sharply. As a result, the coming weeks could bring both significant gains and increased volatility as Bitcoin’s bullish phase unfolds.
BTC test price detection
Bitcoin is up more than 19% since Monday and is on track for its highest weekly close ever. The price action has confirmed a bullish trend after consistently breaching record highs four times in the past five days, indicating strong momentum. BTC now seems too strong to recover significantly in the short term. However, with speculation increasing and highly leveraged transactions hitting the market, volatility may increase in the coming days.
A pullback to the $73,800 level would maintain the bullish structure. This price represents a major resistance level that was recently broken and could now act as strong support. If Bitcoin can sustain above this level after a pullback, it would strengthen the bullish trend and provide the fuel needed for further upside potential.
While the bullish momentum is undeniable, the increase in speculative activity and leverage could lead to sharp price swings. If the market faces a pullback, it will be important to see if key support levels such as $73,800 hold. This would confirm that the trend is intact and allow Bitcoin to continue its upward trajectory without losing much ground.
Featured image of Dall-E, chart from TradingView