- Bitcoin surged over 7.5% in a week but faces potential correction after hitting $68,000 resistance.
- 91.5% of Bitcoin holders are in profit, signaling a possible market correction ahead.
- Futures open interest hit record highs, with analysts predicting potential pullbacks due to increased demand.
Bitcoin’s recent price rise above $67,000 has stirred the cryptocurrency market, with its value climbing by over 7.5% in the past seven days. On October 15, Bitcoin briefly touched a 10-week high of $67,922. However, analysts warn that the momentum may not last, pointing to technical and onchain signals that suggest a potential price correction in the coming days.
A significant factor behind the recent rally has been the sharp increase in Bitcoin exchange-traded fund (ETF) inflows, which have exceeded $926 million in the last two days alone. While the current momentum appears strong, some caution that Bitcoin may face challenges breaking through its $68,000 resistance level.
High Percentage of Bitcoin Holders in Profit Signals Overheating Market
As Bitcoin’s price rose above $67,000, data from Into The Cryptoverse revealed that 91.5% of Bitcoin holders are now in profit. This represents a shift from the 8.5% who were still in a position of loss when the price was at $66,870 on October 16. A high percentage of holders in profit often suggests an overheated market, which may lead to a pullback as investors look to lock in their gains.
The increase in profits for short-term holders may prompt some to sell off their holdings, potentially triggering a market correction. Analysts believe this dynamic could lead to price fluctuations in the near term.
Record High Futures Open Interest Adds to Concerns
In the futures market, open interest for Bitcoin contracts reached an all-time high of $38.4 billion on October 16, according to data from CoinGlass. This follows a similar surge in September when Bitcoin futures open interest spiked but failed to push the price past $66,000, resulting in a sharp 11.5% correction shortly afterward.
CME futures have also seen record-breaking levels of open interest, peaking at 172,430 BTC, equivalent to roughly $11.53 billion. Analysts note that this rise in futures activity may contribute to market volatility, as investors could face liquidations if the price fails to sustain current levels.
With Bitcoin facing resistance at $68,000, the coming days will likely determine whether the cryptocurrency can continue its upward trajectory or if it will experience a similar pullback to past price corrections. Investors are keeping a close eye on the $68,000 mark, with data suggesting that failure to break through this level may lead to a dip toward $61,000.
