Bitcoin recently surged to $66,000, and this has led to a wave of bullish predictions. Traders are now betting that the price could surpass its all-time high. While Bitcoin hasn’t set a new record yet, its Open Interest (OI) has hit a significant peak. This shows that interest in Bitcoin is at a notable high.

The rise in OI, along with the price increase, indicates that traders are feeling confident about a potential breakout for Bitcoin. So, how high can it go?

Bitcoin Open Interest Hits New High

Open Interest measures the total number of open contracts in the market. When OI goes up, it means traders are actively entering positions, usually in anticipation of significant price movements. If OI decreases, it suggests reduced exposure to the coin.

According to CryptoQuant, Bitcoin’s Open Interest has reached an all-time high of $19.80 billion. The last time it was this high was in July when Bitcoin’s price neared $68,000.

Given the current market sentiment, it’s reasonable to think that Bitcoin might challenge its all-time high of around $73,750. But that depends on whether interest in the asset continues to grow.

Crypto analyst EgyHashX pointed out that the rising liquidity could positively impact Bitcoin’s price in the short term. “This upward trend in the derivatives market shows a growing influx of liquidity and more attention in the crypto space. The rise in funding rates also indicates bullish sentiment among traders,” he explained via CryptoQuant.

Additionally, the recent increase in Bitcoin’s Funding Rate reinforces the bullish outlook. The Funding Rate measures the cost of holding long versus short positions in futures contracts. When it’s positive, it suggests that more traders are leaning toward long positions, expecting a price increase.

A negative Funding Rate would indicate a bearish outlook, where more traders favor short positions. Since the Funding Rate has been at its highest level since August and remains positive, it signals that traders expect Bitcoin’s price to rally, with targets around $75,000.

BTC Price Prediction: 14% Increase to Start With

For the last few months, Bitcoin has traded within a descending channel, limiting its ability to break out. However, on October 14, BTC finally rose above resistance at $65,234, reaching $66,474 before pulling back slightly. Despite this, Bitcoin hasn’t re-entered the descending channel, which suggests that the bullish trend might still be strong.

If this trend continues, Bitcoin could break through the resistance at $70,738. If that happens, the price might climb to $75,002 by the end of this quarter.

On the other hand, if Bitcoin fails to rise above $66,009 again, this could invalidate the bullish sentiment. In that case, Bitcoin might decline to $60,272. Brian Quinlivan, Lead Analyst at Santiment, advised caution, suggesting that Bitcoin may have hit a local top.

“One thing that’s a bit concerning is how bullish the crowd is during this BTC rally. The ratio of positive to negative comments over the past two days is the highest we’ve seen all year, which can often signal short-term tops,” Quinlivan noted.