Bitcoin Traders Pause As BTC Price Indicators Suggest New Highs Ahead

Bitcoin missed reaching its all-time high, but several price indicators suggest BTC is on track to hit new record highs.

Source: tarifemevzuati.com

Between Oct. 27 and Oct. 29, Bitcoin surged 9.7%, peaking at $73,575 before retracing to retest the $71,500 level on Oct. 30. Despite this correction, various indicators such as derivatives market activity, on-chain data, and stablecoin demand suggest a strong foundation for a rally beyond $73,000 in the near term. The Bitcoin futures premium, a key indicator of leveraged demand, reflects strong confidence among bullish investors. In neutral markets, monthly futures contracts typically show a 5% to 10% annualized premium due to the extended settlement period. Currently, the premium stands at 13%, its highest in over four months, signaling no major weakness despite Bitcoin’s rejection at $73,575.

Bitcoin’s price movements mirrored gold, which briefly hit an all-time high of $2,790 on Oct. 30 before losing momentum. Gold’s pullback was influenced by recent macroeconomic data released on Oct. 30, including the U.S. private payrolls report showing a 233,000 job increase in October. Additionally, the U.S. Bureau of Economic Analysis reported 2.8% third-quarter GDP growth, slightly below the previous quarter’s 3%.

This economic resilience reduces the chances of significant interest rate cuts by the Federal Reserve, lowering immediate demand for alternative assets like gold and Bitcoin. Furthermore, a strong economy doesn’t necessarily boost demand for U.S. government bonds. Rising public deficit concerns have driven up refinancing costs, with 5-year U.S. Treasury yields climbing from 3.5% to 4.1% over the past month.

Bitcoin On Chain And Derivatives Metrics Indicate Growing Optimism

Amid ongoing skepticism surrounding U.S. macroeconomic policies, Bitcoin's resilience during a short-term price pullback is not unexpected. Notably, exchange net flows saw a surge of deposits when Bitcoin surpassed $70,000 on Oct. 29, indicating that some traders were eager to take profits at this level. However, by Oct. 30, the data showed a reversal, with net outflows becoming dominant. While some traders initially sold near the all-time high, this was short-lived and within normal trading patterns.

To further assess sentiment, stablecoin demand in Chinese markets provides additional clarity. Strong demand for cryptocurrencies typically drives stablecoin prices to a 2% premium over the U.S. dollar, while a discount often signals market fear. Recent data shows the stablecoin premium in China slightly declined from 0.7% to 0.3%, staying in a neutral range. Despite Bitcoin’s $2,140 correction on Oct. 30, this suggests market resilience. Combined with on-chain metrics and derivatives indicators, there is ample evidence that traders remain optimistic about Bitcoin's ability to sustain its bullish momentum in the near term.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.