Can Bitcoin continue to soar despite hitting new highs? Analyst: Data shows that the market is not o
Although Bitcoin reached a new high this week, there are no signs of overheating, and several analysts have pointed out that fundamentals suggest that Bitcoin may further rise.
Alex Thorn, head of research at Galaxy Research, stated in a market report on November 7th:
From a fundamental perspective, the market does not appear to be overheated
Alex Thorn pointed out that the open interest contracts (OI) of Bitcoin futures have slightly risen to a new annual high, but the funding rates have remained largely unchanged. This means that traders who have opened new positions or existing positions have not shorted or closed them, and still see a potential rise in Bitcoin. According to Coinglass data, at the time of writing this article, the open interest in Bitcoin has exceeded $46.7 billion.
Alex Thorn predicts that the trading prices of Bitcoin and other cryptocurrencies will be significantly higher than their current historical highs in the next 12 to 18 months.
In addition, Aurelie Barthhere, an analyst at cryptocurrency analysis company Nansen, expressed a similar viewpoint. In her market report on November 7th, she pointed out that Bitcoin's breakthrough from historical highs with high trading volume is a clear signal of sustained positive momentum after the election. Aurelie Barthere added that after Trump won the US presidential election on November 5, traders began to "take risks again", which was reflected in the recent upward trend of the cryptocurrency market.
On the other hand, according to previous reports from Zombie, the US Bitcoin spot ETF recorded a daily net inflow of $1.38 billion, setting a record high since its listing, indicating that traditional financial investors are also optimistic about Bitcoin and have established Bitcoin risk exposure through ETFs.
However, it should be noted that Coinglass's contract clearing heatmap shows that there is a risk of large-scale clearing in both the upper and lower ranges of Bitcoin. Once triggered, it may lead to severe price fluctuations. Therefore, holding spot trading would be a better trading option at this stage.
