Bitcoin Price to the Moon! BTC Futures Hit $17B First Time in 18-Months

Bitcoin Price Forecast:

• Bitcoin (BTC) price soared to $37,900 on Thursday as it scored a 3rd yearly peak in the space of 3 weeks. 
• Bullish futures traders have increased BTC capital stock to $17 billion on Saturday, November 11, rather than retreat amid the mild-price consolidation.
• Technical analysis indicators show that BTC could reclaim $40,000 it breaks out of the current consolidation phase.  

Bitcoin price briefly grazed $38,000 on Thursday as the bulls drove BTC to a third yearly peak within the space of 3 weeks. On-chain analysis examines how BTC Futures markets hitting a historic high of $17 billion could impact BTC price action in the coming weeks. 

Bitcoin Futures Hit $17 Billion For the First Time Since TerraUST Crash

Over the past month, Bitcoin hit 3 new price peaks for 2023. The rally has been majorly attributed to corporate investors buying up BTC to front-run the impending approval of Spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC).

The Coinglass chart below illustrates how BTC Open Interest stood at $12.3 billion a month ago, on October 11. But that figure since grown rapidly by reaching an 18-month peak of $16.5  billion on November 11. 

This means that futures markets traders have bet an additional  $3.8 billion on BTC price rally within the past month.he last that b

For two main reasons, strategic investors will anticipate this bullish indicator to drive up BTC price above $40,000. 

• Firstly, the 3.8 billion additional capital has seen the total BTC Open Interest increase by 30% between October 11 and November 11. Meanwhile BTC price has increased by 37% during that period. This implies that every additional dollar invested has the potential to drive up BTC price exponentially. 

• Secondly, the last time Bitcoin Open Interest was in May 2022, just before the infamous TerraUST crash. At the time BTC price was at $39,000. This is a clear indication that,  at $37,500, the current BTC price is still undervalued, relative to the capital traded in the secondary derivatives markets. 

Going by this historical analysis, BTC price is likely to make another leg-up toward reclaiming $40,000 in the days ahead. 

BTC Price Prediction: Can the Rally Reach $40,000 ? 

From an on-chain perspective, the Bitcoin futures markets hitting $17 billion for the first time in 18 months puts BTC in a prime position to break into a new 2023 peak above $40,000. 

However, the daily time frame, technical analysis indicators suggest that BTC price will enter a momentary consolidation phase before breaking out above $40,000. 

As seen below, at $37,100 Bitcoin price is current trading above the Upper Bollinger band of $37,081. 

When the current Bitcoin (BTC) price is higher than the Upper Bollinger Band, it suggests that BTC is trading at a relatively higher price compared to the upper boundary of the typical price range. This situation can indicate that BTC is in overbought territory. Traders often interpret this as a bearish signal, as it may suggest that BTC is at risk of a price pullback or consolidation. 

However if BTC price retraces, the bulls will mount signifiant support wall around the lower Bollinger band at $34,900. Failure to hold that support level could effectively turn the Bitcoin price rally on its head.