Why is Bitcoin price up today?

Bitcoin open interest reached a new all-time high, and the US BTC ETF holdings soared to $66 billion as BTC rallied to $72,000. 

has witnessed a 5.70% jump over the past two days, reaching a high of $72,100 for the first time since June 2024. The $70,000 level was reclaimed after spot Bitcoin ETF flows registered net positive inflows of $479.4 million on Oct. 28.

BlackRock (IBIT) continued to lead the inflows with over $300 million, followed by ARK Invest’s (ARKB) $59.8 million influx over the past day. CryptoQuant data also indicated that the average daily inflow into Bitcoin ETFs has been $257 million over the past 30 days, which steadily pushed BTC’s current prices above the $70,000 mark.

US Bitcoin ETF holdings top previous August 2024 highs

In line with daily BTC ETF inflows, Charles Edwards, Founder of Capriole Fund, underlined a new development before BTC moved above $70,000. In an X post, Edwards said that the US Bitcoin ETF holdings reached a new all-time high of $66 billion.

The above trend continues to validate the rising institutional demand for BTC. Additionally, Ki-Young Ju, CEO of CryptoQuant, highlighted that institutional demand is currently twice as high as retail demand as of the end of 2024.

Young-Ju added,

“Over the past year, 278K BTC flowed into U.S. spot ETFs (80% retail) vs. 670K BTC into whale wallets (1K+ BTC, excluding exchanges/mining pools).”

Bitcoin open interest increases by $2 billion in 48 hours

On Oct. 28, Bitcoin open interest increased by $2 billion when prices were still around the $68,800 mark. Within the next eight-hour window, BTC breached the $70,000 level, reaching a new high of $71,600 during the early hours on Oct. 29.

Total Bitcoin OI also reached a new all-time high at $22.77 billion as the crypto derivatives market continues to dictate price action.

Meanwhile, over $150 million in liquidation leverage positions were triggered after BTC crossed $70,000, further pushing prices above $71,800. Andre Dragosch, European head of research at Bitwise, added that the current short liquidations were at their highest level since April 2024.

Bitcoin must close above $76,000 “for real” breakout

While the community rejoices in BTC’s first $70,000 ascend since June 2024, Peter Brandt, a renowned markets trader, explained that the current rally needs to successfully break and close above $76,000 on the daily chart, in order to confirm a breakout “for real”.

Brandt stated,

“Diagonal patterns with slanted boundary lines are difficult to trade because the nicking of a boundary line — while exciting to bulls — does NOT represent a breakout.”

From a technical perspective, BTC is facing immediate resistance around $71,500, which was tested five times during H1 2024. At the moment, Bitcoin has moved above resistance, but a close above $71,500 on the daily chart will be further confirmation of continued bullish momentum.

However, Bitcoin’s current uptrend continues to form a new higher low (HH4) in the chart, which continues to evolve its medium-term trend into a long-term outlook.

Source: Cointelegraph