Is Bitcoin on its way to new all-time highs? Or are we currently seeing a classic “fake-out”? These 3 charts provide some insight.
 |
| Does the recent Bitcoin rally have legs? This is what the on-chain data says |
After a lot of volatility in recent days, Bitcoin is targeting the $70,000 mark for the first time since July. Bitcoin fluctuated within its current range for an entire summer, which is why many are now wondering whether this is the long-awaited breakout. The following charts are at least optimistic.
Retail investors back?
As X-user AxelAdlerJr notes on crypto's favorite messaging service , retail investor interest seems to be returning for the first time since April, when Bitcoin was near its all-time high and halving was imminent.
His analysis refers to the chart below from CryptoQuant. It shows the 30-day percentage change in retail investor demand. This includes transaction volumes from 0 to 10,000 US dollars. This value currently stands at a good ten percent. This metric usually only rose higher when Bitcoin really picked up speed, most recently in May and before that during the halving and ETF approval.
In the past, the growing interest of retail investors has often been an indicator of an impending altcoin season .
 |
| Percentage change in retail investor demand in 30 days | Source: cryptoquant.com |
Activity increases
At the same time, data from CryptoQuant shows that the number of daily active addresses has increased significantly. This metric has exceeded its monthly and yearly moving averages, indicating a positive change in user behavior on the network.
The chart below clearly shows the decline in network activity measured by active users during Bitcoin's long sideways movement. As of the beginning of October, the daily value has now risen to over a million and gives hope that the next phase of the Bitcoin bull market is approaching.
 |
| Bitcoin – active addresses | Source: cryptoquant.com |
Open Interest reaches new all-time high
Last but not least, a chart that BTC-ECHO market analyst Stefan Lübeck drew attention to. Open interest reached a new all-time high of 19.8 billion US dollars in the past few days. This refers to the total number of open or unsettled futures contracts on Bitcoin in the derivatives markets.
👀 The Open Interest of #Bitcoin jumped to a new all-time high around 19.8 Billion #USD. The steady rise in the last quarter shows rising interest of Investors wanting to trade $BTC. Lately more & more Long Positions were opened, underlying more risk taking in the #cryptomarket. pic.twitter.com/m9jae4lbnG
— Stefan Luebeck (@CryptoEva) October 15, 2024
In addition to this metric, funding rates on some crypto exchanges are climbing to their highest levels since August. Together, both values indicate that traders are increasingly taking long positions on Bitcoin. Bullish sentiment among investors is evidently gaining momentum again, while more and more liquidity is flowing into the derivatives markets. Both are positive signals for further upside potential for the leading crypto currency.