Bitcoin is trading at September highs, retreating after breaking above $66,000 on October 14. Although the coin is dwindling at spot rates, the path of least resistance is emerging northward and the trend is changing to match the gains seen in Q1 2024.

Interest in Bitcoin Open is growing, approaching $40 billion

After months of lower lows, the world’s most valuable coin is gaining in value, and with it, sentiment is improving. The latest market data shows open bitcoin interest on all major derivatives exchanges is approaching an all-time high.

According to Coinglass, open interest rose to over $39 billion in March 2024. As of October 15, Bitcoin’s open interest is over $37.6 billion, up from yesterday’s $34.6 billion.

Open interest is typically used to gauge a trader’s interest. The exchange data includes the number of all leveraged low and long positions posted by traders on top exchanges, including Binance and Bybit.

Because open interest is non-directional and does not indicate whether there are more buyers or sellers at any given time, the metric measures a trader’s interest and willingness to engage.

Whenever cryptocurrency prices rise, as they did in early Q4 2023, open interest began to enhance before reaching an all-time high of over $39 billion in March 2024.

Falling Bitcoin prices from Q2 2024 also coincided with a decline in open trades. By August 6, when BTC dropped below $50,000, Bitcoin’s open interest dropped below $26 billion, after which it began to gradually enhance.

Will BTC prices rise above $74,000?

Given the rate of growth over the last 24 hours, it is highly likely that any breakout and close above $66,000 could attract more traders into open leveraged positions. In such a case, Bitcoin’s open value would rise to over $40 billion, reaching an all-time high.

From the daily chart, Bitcoin decisively rejected $66,000, marking September highs. However, if the October 14 bull reverses, prices could rise, returning to the July 2024 highs of $70,000. For now, investors are confident that prices will equal the September increases and reach the March peaks.

While confidence is high, long to low ratio data from Coinglass discovers fewer long than low volumes. Currently, 51% of BTC trading volume is selling and 49% is buying volume. This data signals that most traders are still bearish.

Feature image from Canva, chart from TradingView