Bitcoin has surged to a record high of $68,999 on numerous exchanges as global fears mount around the inflation of the US Dollar.
It was revealed today that US inflation had hit 6.2%, which was the highest it has been since 1990.
This caused an instantaneous flurry of buy orders across all cryptocurrency markets, as Bitcoin broke above the $67,000 level of resistance with consummate ease.
At the time of writing it is trading at $68,550 as speculators begin to mull over the prospect of Bitcoin hitting a stunning $100,00 valuation before the end of the year.
However, as levels of euphoria and optimism begin to peak, it’s worth noting that Bitcoin is reaching its all-time high in terms of open interest, which is a result of increased amount of leverage entering the market.
Open interest typically gets flushed when there is an uneven ratio on either side in what is often called a “long squeeze” or “short squeeze”.
From a technical perspective, Bitcoin has several levels of support at $63,000, $59,500 and $56,400, all of which may need to be tested before an eventual move to $100,000 comes to fruition.
In order to reinforce the bullish narrative around Bitcoin, it needs to avoid a weekly close below $63,000 as that would stifle the momentum established this week.