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Key Insights:
- Bitcoin price (BTC) surged about 22% from $63,500 to nearly $79,000.
- Coin-based open interest fell 11% to approximately 312,600 BTC.
- Bitcoin ETF inflows and short liquidations supported the rally.
The Bitcoin price has jumped about 22% from the mid-$63,000s to nearly $79,000 since mid-August. The advance then slowed near the upper edge of Bitcoin’s long trading range. Yet derivatives data shows traders did not chase the move with more coin-denominated leverage.
Instead, open interest measured in Bitcoin fell while the market value of those positions increased. Fresh demand for Bitcoin ETFs also added to spot buying during the rebound.
Meanwhile, forced short closures accelerated the steepest section of the move. Those combined forces give the rally a different structure from a typical leverage-driven surge. That mix places the focus firmly on sustainability.
Bitcoin Price Advances While Coin Open Interest Falls
Santiment said coin-denominated open interest dropped 11% to about 312,600 BTC, its lowest level in one month. The decline occurred while the BTC price climbed from roughly $63,500 to around $77,700.
Dollar-denominated open interest still rose about 8% because each Bitcoin became more valuable. That distinction matters when traders assess how much borrowed risk entered the market. A rising total dollar amount can look speculative even when the number of leveraged coins declines.
The data suggests existing contracts gained value without a broad rush into new positions. Therefore, derivatives did not expand at the same pace as the Bitcoin price. That reduces one
CryptoQuant also described fresh capital entering while leverage stayed controlled. Spot-led advances can absorb selling more steadily than rallies built mainly on borrowed positions. They are not immune to pullbacks, but fewer crowded longs can limit forced selling during routine declines.
Bitcoin ETF Buying Adds Fresh Spot Support to the Rally
Regulated funds supplied anotherd $1.6 billion of net inflows from Monday through Thursday. Thursday saw a $606 million inflow, the largest daily inflow since May
Those flows place actual buying pressure on the underlying market through fund creation activity. They also show demand beyond traders using perpetual futures or margin. This gives the BTC price rally a broader base than short covering alone.
Earlier sessions had already shown improving demand for funds. U.S. spot products took in $297.6 million on Monday and $189.3 million on Tuesday. The two-day total reached $487 million
ETF demand can still reverse quickly. Still, the recent concentration matters because the Bitcoin price approached $80,000 even as leverage, measured in coins, declined. Continued creations would help absorb profit-taking near the range high.
Bitcoin Price Faces a Test Near the $80,000 Ceiling
Short liquidations provided the rally’s fastest burst.Anthony Pompliano described the move as the largest Bitcoin short squeeze on record.Coinglass data shows more than $1 billion in short liquidations within 60 minutes when Bitcoin crossed $69,000.
Forced closures require bearish traders to buy back exposure. That buying can push prices higher, trigger more liquidations, and create a rapid feedback loop. It explains part of the speed without proving that leverage drove the entire advance.
Bitcoin price now confronts resistance near $79,000 to $80,000. The zone marks the upper boundary of the broader $60,000 to $80,000 range. Sellers may defend it after the 22% climb.
A sustained break would require spot demand to persist after short-liquidation pressure fades. Traders can monitor coin-denominated open interest for signs of renewed risk-taking. They can also track daily Bitcoin ETF flows for evidence that regulated demand is absorbing sales.
If the BTC price holds recent breakout levels, buyers may attempt another test of $80,000. A loss of those levels would shift attention toward the $75,000 to $76,000 support area.
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Source: www.thecoinrepublic.com