Bitcoin (BTC) Bullish Phase Confirmed as Open Interest in Perpetual Swaps Hits Multi-Year High

Bitcoin has entered a confirmed bullish phase, supported by both price action and compelling on-chain data.

Bitcoin price has soared to a new all-time high once again, reaching $79,780. This marks the fourth time in just five days that BTC has set a record high, firmly establishing a bullish phase that began when it broke its previous all-time high in March.

Market optimism surged following Donald Trump’s recent victory in the US election, adding momentum to Bitcoin’s rise. According to IntoTheBlock data, open interest in perpetual swaps has reached its highest ratio to market cap since the FTX collapse. This metric often indicates heightened market interest and potential future volatility.

Bitcoin has now entered a confirmed bullish phase, supported by both price action and compelling on-chain data. IntoTheBlock recently reported that open interest in perpetual swaps has reached its highest ratio to market cap since the FTX collapse. This surge in open interest highlights the intense trader interest in BTC derivatives, as participants are increasingly speculating on Bitcoin’s price movements through leveraged positions.

A high open interest-to-market-cap ratio can often signal heightened market expectations for significant price moves. In BTC’s case, this surge in derivatives trading suggests that traders are anticipating either upward or downward price volatility. The high leverage involved in open interest also means that even small price changes can lead to substantial gains or losses for these traders, amplifying BTC’s short-term volatility.

If the price continues to rise in line with trader expectations, this elevated open interest could propel a powerful upward movement as leveraged positions gain momentum. This scenario, however, carries risks: if BTC were to reverse direction, many leveraged positions could face liquidation.

This would force traders to close out their positions at a loss, potentially triggering a cascade of liquidations that could temporarily drive the price down sharply. As such, the coming weeks could bring both significant gains and heightened volatility as Bitcoin’s bullish phase unfolds.

BTC is testing price discovery territory, having surged over 19% since Monday and on track for its highest weekly close ever. The price action has confirmed a bullish trend after consistently breaking all-time highs four times in the past five days, signaling strong momentum. BTC now looks set to continue rallying, at least in the near term.

A pullback to the $73,800 level would maintain the bullish structure. This price point represents a key resistance level that was recently broken and could now act as strong support. If Bitcoin can hold above this level after a retrace, it would solidify the bullish trend and provide the fuel needed for further upside.

While the bullish momentum is undeniable, the increase in speculative activity and high-leverage trades entering the market could lead to sharp price swings. If the market faces a pullback, it will be crucial to observe whether key support levels, such as $73,800, hold. This would confirm that the trend is intact and allow Bitcoin to continue its upward trajectory without losing significant ground.