Bitcoin soars above $70,000 as stablecoin supply rate oscillator highlights high demand Bitcoin open interest rises 8.85%, hinting at the possibility of further bullish momentum
After weeks of struggling to break through the $70,000 resistance, Bitcoin finally surged past this important level and was trading near $72,000 at the time of writing. The recent price trend of this cryptocurrency has attracted a lot of attention, with the cryptocurrency increasing by 3.9% within the past 24 hours.
This recovery occurred amid an overall increase in demand, as indicated by various market indicators. This is a sign that investors are regaining confidence in Bitcoin.
For example, BinhDang, an analyst at CryptoQuant, highlighted that demand for BTC is currently reviving, as indicated by the Stablecoin Supply Rate Oscillator (SSRO).
Source: CryptoQuant
SSRO measures the market capitalization of Bitcoin compared to stablecoins such as USDT, USDC, and BUSD and provides insight into the purchasing demand driven by these stablecoins. According to BinhDang, Oscillator data shows an uptick in buying interest driven by stablecoins, which was seen when Bitcoin bottomed in late 2022.
At the time of writing, Bitcoin’s 90-day SSRO was over 2 points positive, indicating a revival in quarterly demand. As cryptocurrencies enter November, this continued demand, combined with positive macroeconomic news, could further strengthen Bitcoin’s position and push it toward new highs.
Other key indicators point to strengthening fundamentals
Beyond the cryptocurrency’s price fluctuations, Bitcoin’s fundamental indicators are also showing new strength.
In fact, Glassnode data shows that active BTC addresses have increased over the past few weeks, suggesting more participants are re-entering the market. As of late October, there were more than 760,000 active addresses, up from less than 700,000 a few days earlier.
Source: Glassnode
Fluctuations in this indicator highlight changes in market engagement, with recent gains indicating renewed interest, which often correlates with bullish price action. More activity between addresses means more transactions are occurring on the BTC network, which is often a positive indicator of increased demand and market activity.
At the same time, Bitcoin open interest tracked by Coinglass increased by 8.85% to $42.56 billion. This surge in open interest was particularly notable as the amount increased by 118.55% to $80.43 billion, indicating increased participation from futures and derivatives traders.
Source: Coinglass
A rise in open interest usually means more money is flowing into the market. This allows traders to take advantage of Bitcoin’s next potential move, creating momentum and potentially pushing the price higher.
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