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.”
$75,979 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.”
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.
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 Bitcoin rally to the $78,000 to $85,000 range.