Key takeaways:<\/strong><\/p>\n Bitcoin rallied above $109,000 as the global money supply reached new highs.<\/p>\n<\/li>\n BTC open interest rose by 10% amid a strong Coinbase Premium and stable funding rate, pointing to spot demand.<\/p>\n<\/li>\n Multiple technical indicators suggest a major breakout is underway, with analysts eyeing a $137,000 Bitcoin price.<\/p>\n<\/li>\n<\/ul>\n Bitcoin (BTC<\/a>) price jumped on Wednesday, rising by 3.6% and reaching $109,730 for the first time since June 12. The recovery occurred at the back of the global money supply (M2), reaching a new all-time high above $55 trillion.\u00a0<\/p>\n If Bitcoin closes the daily candle above $108,500, it will confirm a strong bullish engulfing pattern, increasing the likelihood of new highs sooner rather than later.\u00a0<\/p>\n Bitcoin\u2019s recent price jump to $109,500 from $105,200 was outlined by a sharp rise in derivatives activity, pointing to renewed momentum. Open interest<\/a> (OI) across major futures exchanges surged by 10%, or approximately $3.2 billion, signaling a substantial influx of capital into the market. The increase was primarily driven by long positions, suggesting confidence in further upside.<\/p>\n Despite the uptick in price and OI, funding rates remained stable across perpetual futures markets. This indicates a balanced sentiment between long and short traders, and more importantly, that the rally was not driven by excessive leverage. From a bullish standpoint, stable funding during a price increase implies that the uptrend may be more sustainable.<\/p>\n A notable short squeeze accompanied the move, with over $196 million in short positions liquidated<\/a> within the past 12 hours. This liquidation cascade likely accelerated Bitcoin\u2019s push past key resistance levels.<\/p>\n Further validating the buy-side strength, the Bitcoin Coinbase Premium Index<\/a> stayed elevated throughout the move. This metric, which tracks the price difference between Coinbase and other major exchanges, suggests consistent spot buying pressure from US-based institutional and retail investors, adding weight to the bullish case.<\/p>\n Related: Bitcoin price target \u2018sits around $170K\u2019 as global M2 supply reaches record high<\/strong><\/em><\/a><\/p>\n With Bitcoin decisively breaking out of its recent sideways range, market analysts are increasingly confident that a new all-time high is imminent. According to trader Rekt Capital<\/a>, a record weekly close above $109,300 this Sunday could place BTC above its final major resistance zone, effectively \u201cunlocking\u201d price discovery and paving the way for new highs.<\/p>\n Adding to the bullish narrative, analyst Jackis highlighted<\/a> that Bitcoin recently reached its lowest volatility levels since 2023, a rare occurrence seen only seven times in its history. \u201cEvery time we\u2019ve hit these levels, a major volatility spike followed within five weeks, often sooner,\u201d Jackis noted, suggesting a significant move is on the horizon.<\/p>\n Meanwhile, technical analyst Titan of Crypto pointed<\/a> to a confirmed bullish MACD crossover on the daily chart as a key momentum signal. The analyst added that BTC is attempting a breakout from a bullish flag pattern, with a successful push likely triggering a \u201cmagnet effect\u201d toward the $137,000 region.<\/p>\n\n
Bitcoin open interest jumps over 10% during rally<\/h2>\n
Is a BTC all-time high pending?<\/h2>\n