- On December 6, Bitcoin temporarily traded above $44,000.
- Open interest on the currency’s options has reached an all-time high.
Bitcoins [BTC] The price briefly surpassed the $44,000 mark during the intraday trading session on December 6, reaching the highest level since April 2022.
This rebound coincided with a record-breaking rise in open interest on options, which reached a record high of $20 billion, according to data from MintGlass.
Open interest for BTC options has been steadily rising since the start of the year. Since the beginning of the year, it has risen by more than 6,500%. For context, as of January 1, open interest on options was $3 billion.
A spike in an asset’s options open interest indicates increased investor activity by traders who prefer to hedge their holdings or speculate on future price movements.
This increased confidence in BTC’s current trajectory was further fueled by the liquidation of nearly $100 million worth of BTC shorts on centralized exchanges on December 6.
This “short squeeze” occurs when traders betting against BTC’s price appreciation are forced to buy back the asset, causing the price to rise further.
According to The Block data dashboardSo far in the past month, there has been an increase in short liquidations on centralized exchanges as the price of BTC continues to pursue record highs.
Miners make profits as BTC makes history
As BTC trades at an 18-month high, miners on the network have increasingly sold off their coin holdings to make a profit, AMBCrypto found.
A review of miner activity in the chain revealed a decline in miner reserves since December 1.
BTC’s Miner Reserve measures the amount of coins in miners’ wallets. It tracks the coin exits from miners’ wallets. When the measure falls, it indicates that miners have started selling their assets.
According to data from CryptoQuantBTC miner’s reserve has fallen 25% in the past week. At the time of writing, miners within the BTC network owned 1.83 million coins.
BTC’s Miner Netflow metric confirms the steady outflow of coins from miners’ wallets and has been mainly negative since the start of December. When this is the case, it means that the miner’s reserve is experiencing a decline due to profit taking.
Read Bitcoins [BTC] Price prediction 2023-24
Day traders continue to fill their coffers
Key momentum indicators observed on a daily chart showed that BTC accumulation among spot traders continues non-stop. At the time of writing, the coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) were 74.86 and 86.48 respectively.
At these values, buying pressure was significantly greater than coin distribution.