Bitcoin Hits $79,400 in Strongest Week Since 2023: Spot Demand Threshold to Test Rally
Bitcoin hit $79,400, bringing its weekly gains to 24%; marking its strongest week since March 2023 as the spot demand indicator reached the brink of turning positive.
Bitcoin traded at approximately $78,000 after reaching an intraday peak of $79,400 on Friday. Rising for five consecutive days, Bitcoin has gained approximately 24% since Monday morning.
According to CoinGlass data, liquidations in leveraged positions continued. While $3.3 billion in positions were wiped out on Wednesday, an additional $1.25 billion was liquidated in the last 24 hours. Thus, total liquidations reached $4.55 billion; $1.06 billion of the latest wave came from bearish short positions.
Bitcoin spot demand on the verge of turning positive
The most critical data for the rally’s sustainability came from CryptoQuant’s 30-day apparent spot demand indicator. The metric, which was at minus 206,000 BTC on July 23, recovered to approximately minus 5,000 BTC. The indicator has thus approached the threshold of turning positive for the first time since February 26.
According to CryptoQuant, when the indicator flips from negative to positive, Bitcoin has historically yielded a median 18% gain in the following 60 days and rose in 78% of the periods. The institution noted that the sample size is small and the transition is not yet complete. The sustainability of the rally will depend on the maintenance of spot buying following forced short covering.
Open interest and altcoins follow the surge
Across the market, total open interest increased by 6.17% to $139.37 billion, while open interest in Bitcoin futures rose by 7.38% to $57.7 billion. As Bitcoin surpassed its $76,000 technical pattern target, short-term profit-taking came into play, while RSI remained in the overbought zone.
The Altcoin Season Index fell to 33, while Bitcoin dominance stood at 59.9%. XRP stood out with a 19% increase; ENA gained 13%, ZEC 12.5%, NEAR 8.6%, and LINK 8.2%. XRP’s open interest increased by 15.5%, and its trading volume rose by 139%.