Despite reaching record levels this week, Bitcoin (BTC) is showing no signs of overheating, and many analysts believe there is more upside potential.
Analysts Say Bitcoin Shows “No Signs of Overheating”
In a report from November 7, Alex Thorn, Head of Research at Galaxy Research, stated, “From a fundamental perspective, there are no signs of overheating in the market.” Likewise, Nansen analyst Aurelie Barthere noted that Bitcoin’s breakout to an all-time high with high volume signals positive post-election momentum. With Donald Trump’s election win, Barthere observed, investors are more willing to take on risk, pushing crypto markets upward.
Bitcoin’s Open Interest in futures has seen a slight rise towards annual highs, although Thorn pointed out that funding rates remain largely unchanged. A positive funding rate on exchanges, such as the 0.0100% on Binance, suggests that investors have bullish expectations for Bitcoin, willing to pay a premium to hold positions.
Data shows Bitcoin’s Open Interest reached $45.4 billion on November 6, marking a 13.3% increase from the previous day. This indicates that buyers are confident enough to pay sellers extra to maintain their positions, underscoring positive market sentiment.
Bitcoin’s Upward Momentum Gains Strength
Thorn anticipates that Bitcoin and altcoins will be trading well above today’s levels in the next 12-18 months. According to technical analysis conducted on November 7, many investors expect Bitcoin to rise to the $78,000–$85,000 range. Currently trading around $76,000, Bitcoin is consolidating above its previous peak of $73,679, as noted by crypto analyst Matthew Hyland.
Experts are also watching the effects of the recent 25-basis-point interest rate cut by the U.S. Federal Reserve, implemented on November 7. With lower interest rates, traditional assets may lose appeal, potentially driving more demand for crypto.
The sustainability of Bitcoin’s current levels and whether it can maintain its upward trend will become clearer with further data in the coming weeks.
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