Bitcoin (BTC) is showing signs of a possible parabolic rally in October. A combined reading of a few on-chain metrics signals that the leading cryptocurrency is poised to move toward the $73,000 mark.
Therefore, this analysis explores these metrics and highlights what BTC holders need to know.
Bitcoin is the talk of the town
The surge in demand for spot Bitcoin ETFs is a significant sign of a potential rally above $70,000. Over the past week, these funds have seen only inflows totaling $1.11 billion.
For context, on September 26, inflows into spot Bitcoin ETFs totaled $366 million, representing their highest daily inflow since July 23. According to SosoValue, on that day, three major ETF providers — BlackRock, Fidelity and Ark — saw inflows of $118 million, $73 million and $133 million respectively, highlighting strong demand from traditional U.S. investors.
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Furthermore, changes in the US economic environment have a major impact on Bitcoin’s price. Since its launch, the price of the cryptocurrency has been impacted by factors such as interest rate changes, inflation trends, employment data, and decisions made by financial regulators.
Therefore, increased or decreased demand from US investors often impacts BTC, making it essential to monitor its activities.
Total Net Inflows into Bitcoin Spot ETF. Source: SosoValue
US-based retail and institutional investors have recently increased their BTC accumulation, as evidenced by the Coinbase Premium Index. In a recent X post, Julio Moreno, Head of Research at CryptoQuant, noted that increased demand for BTC in the US has driven the crypto’s price to $65,000.
Coinbase Bitcoin Premium Index. Source: CryptoQuant
If sentiment remains bullish and demand for crypto in this region continues to grow, Bitcoin price could chart a course towards trading above $70,000 in the coming weeks.
BTC Forecast: Rising OI poses risks
Bitcoin’s rising Open Interest (OI) is another good indicator that its price rally will continue. In short, the cryptocurrency’s OI measures the total number of open futures or options contracts that have not yet been settled or closed. According to data from CryptoQuant, it currently stands at $19 billion, up 26% in the last 30 days.
Open Interest do Bitcoin. Fonte: Santiment
Typically, an increase in an asset’s OI signals increased market activity, thus propelling the price to new highs. However, some analysts believe that this poses risks for long position holders.
“Open interest is high, very high, at over $19.1 billion. We are in a high-risk zone and in my opinion it is not the best time for new long positions,” analyst JA Martuun said in a post on X.
Thus, a combined reading of the above on-chain data points to a sustained bullish trend for Bitcoin. If this trend holds, its price will establish support at the $64,000 level and look to break the resistance at $68,000. A successful breakout above this level will put BTC on track to trade above $73,000. The last time it reached this price level was on March 14.
Read more: Bitcoin Price Prediction 2024/2025/2030
Bitcoin Price Analysis. Source: TradingView
However, Bitcoin’s Fear and Greed Index readings indicate an overheated market. In short, when the index is in the “Greed” zone, crypto holders are overly bullish. Historically, this has been a sign of a potential price correction.
Thus, if Bitcoin’s price corrects, it could plummet by 15% and trade at $54,000, invalidating the above-mentioned bullish thesis.
The article Could Bitcoin (BTC) Hit $73K in October? – Analysis appeared first on BeInCrypto Brazil.
