- The CME Open Interest rise could fuel Bitcoin’s ongoing uptrend.
- RHODL Ratio climbed, but BTC’s price could rise toward $70,000.
The CME Bitcoin [BTC] Open Interest has hit an all-time high of $8.66 billion, AMBCrypto found. CME stands for Chicago Mercantile Exchange.
For context, the CME is used to measure Bitcoin exposure to regulated institutions. Therefore, the latest landmark implied that institutional interest in the coin has been increasing.
Source: X
Historically, the hike in CME indicates a period for a change in BTC’s trend. In some cases, it marks the end of BTC’s upswing. Other times, it signals a bullish reversal which sends the price higher.
At press time, Bitcoin’s price had broken through the $65,000 mark.
Time for Bitcoin to shine
Interestingly, the rise in CME Open Interest happened as the coin moved higher than $61,000 where it had remained stuck for a while.
With this trend, one can assume that BTC’s ongoing trend has not reached a turning point where it would run out of steam.
Recently, AMBCrypto explained how the coin price could hit $70,000. But this Open Interest and that article was not the only signal suggesting that the BTC could end the week at a higher value.
Another metric supporting the hike was the Realized HOLD (RHODL) Ratio.
This ratio can be used to time Bitcoin bottoms and tops. If the RHODL Ratio is low, it means Bitcoin is close to the bottom. However, a high ratio suggests that Bitcoin could be overheated and close to its top.
As of this writing, the ratio has significantly increased. But the jump had not yet hit the reading, it was around September 2021 when Bitcoin surpassed $69,000.
With this trend, BTC could have more upside potential.
However, traders might need to be wary, If BTC surpasses $69,000 and the RHODL Ratio closes in on the 2021 reading, the price could undergo a correction.
Should this be the case, Bitcoin’s price could slide to the $58,000 region. Conversely, failure to hit the 2021 ratio could drive BTC higher and $75,000 could be an option in the short term.
Is there more to come?
Furthermore, AMBCrypto looked at the Relative Strength Index (RSI). At press time, the RSI reading was 76.07, indicating that Bitcoin was overbought. Typically, this is supposed to trigger a retracement.
But signals from the Social Dominance said otherwise.
At press time, Social Dominance, which was earlier above 30% had fallen to 21.92%. This decrease implied that the share of discussions about BTC had decreased.
Concerning the price action, this suggested that the coin had not hit the local top.
Source: Santiment
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If the metric continues to drop, Bitcoin’s price action might continue to rise. Nevertheless, traders might need to watch out. For instance, if a wave of profit booking appears, BTC could nosedive.
However, increased buying pressure could drive the price northward.