5 Key Bitcoin Metrics Hint at a New All-Time High in 2024

Bitcoin’s Recent Rally: A Sign of New Heights?

According to Cointelegraph, Bitcoin has recently seen a price surge above $66,000, which is reigniting optimism about the potential for new all-time highs. With a mix of technical indicators, on-chain data, and a shift in investor sentiment, experts believe that Bitcoin (BTC) could be on track to surpass its previous high of $69,000. Here, we explore five key metrics that contribute to this upward momentum.

1. All-Time High Bitcoin Open Interest Indicates Market Liquidity Surge

As reported by CryptoQuant, Bitcoin's open interest (OI) across all exchanges has reached an astonishing $19.7 billion as of October 15. OI reflects the number of outstanding futures contracts, showcasing increased market participation and liquidity. Additionally, data from CoinGlass reveals that Bitcoin’s OI-weighted funding rate soared to 0.0136%, a figure not seen since June 7, 2023, when Bitcoin briefly touched $71,950. This surge suggests heightened bullish sentiment among traders, though it's essential to remember that increased OI may also lead to market volatility.

2. Declining Bitcoin Supply on Exchanges Strengthens Bullish Outlook

Recent data from CryptoQuant indicates that Bitcoin reserves on centralized exchanges have plummeted to 2.68 million BTC, marking a near five-year low. This represents a 20% drop from the $3.37 million peak observed in July 2021. This trend indicates traders are increasingly choosing to hold onto their Bitcoin instead of selling, positioning themselves for potential long-term gains. With Bitcoin’s year-to-date growth exceeding 55%, a decreasing exchange supply typically reduces selling pressure, enhancing the likelihood of a sustained price rally.

3. Record Spot Bitcoin ETF Inflows Signal Institutional Interest

Spot Bitcoin ETFs are becoming instrumental in driving market demand. According to SoSoValue Investors, U.S. Bitcoin ETFs saw a remarkable $555.8 million in net inflows on October 14, marking the highest daily inflow since June. Nate Geraci, President of ETF Store, emphasized the steady growth of institutional and advisory interest, with nearly $20 billion invested in Bitcoin ETFs over the past ten months. This growing acceptance among institutional investors creates an encouraging environment for Bitcoin’s future price growth.

4. Monthly RSI Indicates Potential Rally to $233,000

Bitcoin's monthly Relative Strength Index (RSI), a crucial momentum indicator, suggests a possible surge further upward. Analyst Bitcoindata21 utilized historical RSI trends to predict that Bitcoin could spike to $233,000 by the peak of the current bull cycle, expected in early 2025. This projection aligns with previous cycle highs, where Bitcoin's RSI has typically ranged between 88 and 90. If this pattern holds, six-figure levels could become achievable, bolstering expectations for new all-time highs.

5. 200-Day SMA Breakout Reinforces Upward Trajectory

Bitcoin has successfully reclaimed its 200-day Simple Moving Average (SMA) at $63,335, a critical technical milestone. Historically, breaking above the 200-day SMA has often led to substantial price increases. Data from IntoTheBlock shows that Bitcoin has strong support within the demand zone of $61,770 to $63,728, where 1.1 million BTC were purchased by 2.5 million addresses. This suggests that Bitcoin's path of least resistance is upward, with limited downside risk in the near future.

Are New Bitcoin Highs on the Horizon?

As Bitcoin enters what many are calling "Uptober," the alignment of technical indicators, on-chain metrics, and a rise in institutional demand suggests the potential for reaching new heights. With record open interest, surging ETF inflows, and a notable reduction in supply on exchanges, market sentiment remains predominantly bullish.