Bitcoin Targets All-Time Highs as Futures Surge Signals Breakout Momentum
Bitcoin Breaks $109K as Derivatives and On-Chain Signals Flash Bullish
Bitcoin's price continued its upward momentum this week, briefly climbing to $109,730 on Wednesday—its highest level since mid-June. The 3.6% price increase came amid a surge in global M2 money supply, which reached an all-time high of $55 trillion, bolstering the case for Bitcoin as a macro hedge.
This rally wasn’t just technical—it was fueled by strong underlying market activity and institutional participation, suggesting a fundamental shift in BTC market dynamics.
Futures Activity Rises: 10% Jump in Open Interest Confirms Capital Inflow
A notable surge in Bitcoin futures open interest added fuel to the price rally. OI across major exchanges jumped by over 10%, or around $3.2 billion, signaling renewed confidence among investors. Crucially, this was led by long positions, reflecting a bullish market outlook.
Related: Bitcoin’s Rally Far From Over, Says Standard Chartered
Despite the uptick, funding rates across perpetual futures markets remained neutral, indicating the rally is not being driven by speculative leverage. This stable backdrop adds credibility to the move, with a $196 million short squeeze amplifying the breakout as overleveraged bears were forced to exit.
Coinbase Premium Signals Robust Institutional Demand
Another bullish metric, the Coinbase Premium Index, stayed elevated during the rally. This indicator tracks the price difference of BTC on Coinbase versus other global exchanges and is widely viewed as a proxy for U.S. institutional buying pressure. The sustained premium reinforces the narrative that spot demand—not derivatives speculation—is driving the uptrend.
Key Technical Indicators Point to Continued Upside
Bitcoin’s price action has triggered several high-confidence technical signals suggesting that a major breakout could be imminent:
- Bullish Engulfing Candle: A daily close above $108,500 would confirm a bullish engulfing pattern, often a precursor to further upside.
- MACD Crossover: A confirmed MACD bullish crossover on the daily chart has historically preceded strong moves in BTC.
- Bull Flag Breakout: Bitcoin is testing the upper boundary of a bullish flag pattern, with a breakout potentially targeting $137,000, according to Titan of Crypto.
Volatility Compression Implies Explosive Move Ahead
According to analyst Jackis, Bitcoin's volatility recently hit its lowest levels since 2023—a condition seen only seven times in BTC’s history. Each instance has preceded a sharp move within five weeks, making the current setup unusually ripe for a volatility expansion.
Weekly Close Above $109,300 Could Unlock Price Discovery
Market strategist Rekt Capital emphasized the importance of this week’s close. If Bitcoin manages to secure a weekly close above $109,300, it could break the final resistance zone before entering price discovery—a phase where previous highs no longer constrain the market.
Bitcoin 1-day chart analysis by Titan of Crypto. Source: X
Such a move would remove the final technical ceiling and could accelerate a run toward fresh all-time highs, analysts suggest.
Conclusion: Bitcoin’s Breakout Looks Fundamentally and Technically Backed
Bitcoin’s move above $109K isn’t just a short-term price jump—it reflects a confluence of strong macro tailwinds, rising institutional demand, and bullish technical signals. With derivatives data showing healthy positioning and volatility at historic lows, the case for an explosive upside continues to build.
If momentum holds, Bitcoin could soon retest its all-time high and potentially extend toward the $137K mark—a key target zone identified by multiple analysts.
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