Over the past week, bitcoin (BTC) has set multiple new all-time highs with the latest seeing the number cryptocurrency hit the $89,600 mark. However, a healthy correction was bound to happen.
As of the time of writing, BTC was trading at $85,264, down 3.5% from its most recent high. Despite this correction, BTC’s underlying metrics show that its price rally is bound to continue with the potential to hit $90,000 in the short term.
Over the past 24 hours, bitcoin futures open interest was up by 3.18%, amounting to $53.53 billion. Typically, a rising open interest shows a sustained inflow of capital and a continuation of the price trend. Similarly, BTC’s funding rate remained significantly positive, showing a bullish outlook for long trades.
This bullish thesis for BTC saw $225 million worth of short positions liquidated over the past 24 hours, according to data from Coinglass. The combination of these metrics along with BTC’s bullish price action could see $90,000 come sooner rather than later.
Once BTC surpasses the $90,000 mark, it could introduce a new wave of highs with the potential for bitcoin to break into the six-figure range. In a note sent to Bitcoin.com News, Rania Gule, the senior market analyst at xs.com believes BTC is in a more mature phase.
“By examining Bitcoin’s past trends, I have found that the cryptocurrency is currently in a more developed phase compared to previous periods,” Gule wrote. “While the recent gains are exciting, market environmental data shows that the current increase in Bitcoin is still below its historical growth following the halving event, which supports the idea that Bitcoin may see further price increases in the future.”
The analyst added:
In my opinion, this indicates that bitcoin is in a renewed cycle that could help push its value to higher levels. Although expectations for the cryptocurrency to reach $100,000 may seem exaggerated to some, the continuous rise in price reflects a strong positive trend, supported by growing interest from large institutions advising investors to increase their cryptocurrency holdings, especially bitcoin.
