Bitcoin hits a new high of $107,000! Key levels driving BTC's next move

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Bitcoin [BTC] continues to make headlines, maintaining its upward momentum, recently reaching an all-time high of $107,822.

This latest milestone highlights Bitcoin's impressive performance so far this year, having surpassed 150% as of the time of writing.

However, after reaching this peak, the asset experienced a slight pullback, trading at $107,064. This reflects a minor decrease of 0.6% from the recent high, but still represents a 2% increase from the previous day.

In light of this price action, recent analyses from CryptoQuant reveal the potential market forces driving the current rally, emphasizing the increasingly significant role of spot market demand in sustaining Bitcoin's price increase.

In addition to the surge in spot market demand, other key Bitcoin indicators further validate the asset's positive outlook.

Data from Coinglass shows that Bitcoin's open interest (a measure of the total value of outstanding futures contracts) has risen alongside its price.

Specifically, BTC's open interest increased by 2.56% to $68.82 billion, while longer-term data indicates a substantial increase of 19.13% in open interest, totaling $100.63 billion.

An increase in open interest typically signifies heightened market activity and investor confidence in Bitcoin's future price trajectory.

Additionally, CryptoQuant data shows that Bitcoin's market value to realized value (MVRV) ratio has climbed to 2.69 as of December 16.

The MVRV ratio is a key on-chain indicator used to assess whether an asset is overvalued or undervalued relative to its actual value.

An MVRV ratio above 2.5 indicates that Bitcoin is in a strong bullish phase, but also suggests that investors may soon start taking profits.

Historically, an MVRV value above 3 signals that the market has peaked, so the current level of 2.69 indicates that Bitcoin still has room to rise, while also suggesting that traders need to exercise caution.

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