Bitcoin may struggle to initiate a notable rise back to its current all-time high of $108,000, triggering speculation about its near-term prospects. Despite declining price performance, many investors remain optimistic about The outlook for BTC as indicated by the main indicators of interest.
Leading Interest Indicators Signal Upbeat Outlook
With market optimism building, Bitcoin has seen a shift in its market dynamics as the Open Interest Delta metric shifts into a positive trend. Alphractal, an advanced investment and data analysis platform reported development on the X platform (formerly Twitter), reflecting renewed optimism.
This development suggests that traders are becoming more active and more confident in the future upside potential of Bitcoin prices, indicating a surge in bullish enthusiasm. Additionally, it is crucial, as large price movements have historically been linked to consistently positive trends Open interest Delta, paving the way for Bitcoin’s next major move.
Reports from the investment platform show that the daily and weekly open interest delta metrics have moved toward optimistic sentiment. This indicates an increase in leveraged exposure on the last day of 2024.
Alphractal noted that speculation toward the end of the year frequently generates many trading opportunities or signals increased interest in long positions. Generally, when the open interest delta metric becomes positive and begins to rise, the value of Bitcoin is expected to increase, indicating strong alignment with price movements.
However, it is imperative to observe whether market markers start to shed their positions, as this could lead to prolonged price drops. Given its correlation with price movements, investors and traders watch the trend closely for implications as they anticipate the next big surge to new highs.
BTC Investors Show Reduced Appetite for Long Positions
Although the open interest delta has become positive, there has been a decrease in investor interest in long positionssuggesting a weakening of long-term investor optimism. On-chain market data shows fewer traders engaging in leveraged long positions, demonstrating a reversal in the bullish mood.
Macro researcher and author Axel Adler Jr. spotted the change in sentiment after looking at Bitcoin’s Cumulative Net Taker Volume metric, which measures the difference between the taker’s buying and selling volumes. Axel Adler noted that there is less desire to open long positions due to the New Year holidays and the lack of encouraging news, even though the bearish pressure from market orders is easing.
More specifically, this reduction in long positions reflects increasing caution on the part of the market, as BTC strives to maintain its upward trend. The expert believes that this drop could allow the bears to exploit the situation and push the market down to the $90,000 threshold soon.
At the time of writing, BTC was trading at $95,352, fueled by a rise of over 2% over the past day. Despite this short increase, its trading volume decreased by almost 26% in the last 24 hours.
Featured image from Unsplash, chart from Tradingview.com
