Key takeaways:
- Bitcoin surged past $109,000 as the global money supply hit record levels.
- BTC open interest climbed 10%, supported by a strong Coinbase Premium and steady funding rates—signs of solid spot market demand.
- Several technical indicators signal a major breakout in progress, with analysts setting their sights on a potential $137,000 price target.
Bitcoin surged on Wednesday, climbing 3.6% to hit $109,730—its highest level since June 12. The rebound followed the global money supply (M2) reaching a record high of over $55 trillion.
A daily close above $108,500 would confirm a strong bullish engulfing pattern, boosting the chances of Bitcoin setting new highs in the near future.
Bitcoin Open Interest Surges Over 10% Amid Rally
Bitcoin’s recent climb from $105,200 to $109,500 was marked by a sharp uptick in derivatives activity, indicating renewed bullish momentum. Open interest across major futures exchanges spiked by 10%, or roughly $3.2 billion, reflecting a significant injection of capital into the market. The surge was largely fueled by long positions, highlighting growing investor confidence in continued upward movement.
Despite the rise in both price and open interest, funding rates remained stable across perpetual futures markets—indicating balanced sentiment between long and short traders. Crucially, this suggests the rally wasn’t fueled by excessive leverage. From a bullish perspective, steady funding during an upward move points to a potentially more sustainable trend.
The price surge was also accompanied by a significant short squeeze, with over $196 million in short positions liquidated over the past 12 hours. This wave of liquidations likely helped propel Bitcoin beyond key resistance levels.
Adding to the bullish narrative, the Bitcoin Coinbase Premium Index remained elevated throughout the rally. This metric, which measures the price difference between Coinbase and other major exchanges, reflects steady spot buying from U.S.-based institutional and retail investors—further reinforcing the strength of the uptrend.
Is a Bitcoin All-Time High on the Horizon?
With Bitcoin breaking decisively out of its recent consolidation range, market analysts are growing increasingly confident that a new all-time high is on the horizon. Trader Rekt Capital noted that a record weekly close above $109,300 this Sunday could push BTC beyond its final major resistance zone, effectively “unlocking” price discovery and opening the path to fresh highs.
Supporting the bullish outlook, analyst Jackis pointed out that Bitcoin recently hit its lowest volatility levels since 2023—a rare occurrence that’s happened only seven times in its history. “Each time we’ve reached these levels, a major volatility spike followed within five weeks, often sooner,” Jackis observed, hinting that a significant move may be imminent.
Meanwhile, technical analyst Titan of Crypto highlighted a confirmed bullish MACD crossover on the daily chart as a key momentum signal. He also noted that Bitcoin is attempting a breakout from a bullish flag pattern, with a successful move likely triggering a “magnet effect” toward the $137,000 level.
