Bitcoin shows no ‘overheated’ signals despite new highs, says analyst

Bitcoin isn’t flashing any signs of being “overheated” despite reaching new all-time highs this week, with several analysts pointing to fundamentals suggesting Bitcoin could pump further.

“The market does not look overheated from a fundamental perspective,” Galaxy head of research Alex Thorn said in a Nov. 7 market report viewed by Cointelegraph.

Crypto analysis firm Nansen analyst Aurelie Barthere echoed a similar sentiment. “Bitcoin crossing its all-time high with heavy volume is a clear signal of ongoing positive momentum following the elections,” Barthere said in a Nov. 7 markets report.

Barthere added that after Donald Trump’s United States presidential election victory on Nov. 5, traders have been rushing to “re-risk, which is reflected in the recent upward movement in crypto.”

Bitcoin’s funding rate ‘mostly unchanged’ amid price surge

Thorn pointed out that while future Bitcoin (BTC) Open Interest (OI) — a metric tracking the total number of unsettled Bitcoin derivative contracts such as options and futures — has “pushed slightly higher to new yearly highs, funding rates are mostly unchanged.”

Bitcoin Open Interest stands at $46.6 billion on Nov. 8. Source: CoinGlass

More significant amounts of Bitcoin OI can sometimes cause worry among market participants about increased Bitcoin volatility.

Still, a positive funding rate signals that traders are optimistic about Bitcoin’s price and buyers are willing to pay sellers a fee to hold their positions.

It comes after Cointelegraph reported that on Nov. 6, Bitcoin OI reached $45.4 billion, representing a 13.3% increase since Nov. 5.

At the time of publication, Bitcoin’s funding rate on Binance, the world’s largest crypto exchange, stands at 0.0100%, according to CoinGlass data.

Related: Bitcoin price target is $120K, says analyst, as key metric flips bullish

Galaxy’s Thorn expects Bitcoin and other cryptocurrencies to trade “at levels significantly above today’s all-time high over the next 12-18 months.”

On Nov. 7, Cointelegraph reported that from the vantage point of technical analysis, traders appear to anticipate a…

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