Bitcoin traders are betting BTC price would reach $40,000 soon.

PATNA ( — Bitcoin traders are betting bullish on BTC price reaching $40,000 in the short term, according to futures data from the Chicago Mercantile Exchange.

Bitcoin futures contracts are a type of financial agreement that allows investors to speculate on the future price of Bitcoin without actually owning the cryptocurrency itself. Traders agree to buy or sell the asset at a future date for a predetermined price.

Bitcoin Traders Betting Bullish Helps CME Overtake Binance

The overall market sentiment remained bullish for Bitcoin. Moreover, open interest for BTC perpetual futures rose while the funding rate remained positive, suggesting that traders were longing the prime cryptocurrency.

Interestingly, according to data from CME, most Bitcoin trades bet bullish on BTC price reaching $40,000 in the near future.

CME Bitcoin futures overtook BTC futures open interest

Macroeconomist and analyst Henrik Zeberg noted that Bitcoin futures on the Chicago Mercantile Exchange rose nearly 21% in Nov. 2023.

This growth propelled CME to surpass Binance and become the largest BTC futures exchange, driven in part by expectations of a spot BTC ETF approval.

Zeberg noted

The analyst also noted that the surge in it was not just retail Bitcoin traders betting bullish but institutional investors were also bullish BTC price future. Zeberg cited increased hype over a possible spot Bitcoin ETF approval as the reason why Bitcoin traders betting bullish.

Additionally, the annualized premium for CME Bitcoin futures surged from 15% to 34% before stabilizing at 23%. The spike in premium indicates investor optimism, suggesting market participants were willing to pay a premium to establish long positions.

Moreover, markets continue to speculate a more dovish Federal Reserve decision on rate hikes, which could be another reason for Bitcoin traders betting bullish on its price action.

BTC Price Drops Below $38,000

Meanwhile, Bitcoin bulls struggle to reclaim the $38,000 price level after BTC slipped 1.5% to register a daily low near $37,600 on Nov. 30. However, despite the bearish pressure, Bitcoin price is likely to end Nov. 2023 up nearly 13% from the monthly low of $34,100.

Bitcoin trader betting bullish on BTC reaching $40,000
BTCUSD daily price chart with RSI. Source:

Bitcoin price would need to break above the resistance near $38,500. Breaking and consolidating above the immediate resistance might help BTC price target the resistance near $40,540 before correcting.

Bitcoin traders betting on BTC reaching $40,000 would be watching the breakout above the immediate resistance closely to open long positions.

However, if BTC price capitulates under bearish pressure, bulls might be forced to defend the 20-day EMA (red wave) support near $37,000. Breaching the immediate support would see BTC price test the support near $34,800.

The RSI for BTC remained neutral, with a score of 60.01 on the daily charts.

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