Bitcoin traders take a breather as BTC price indicators suggest that new highs are approaching

Bitcoin (BTC) rallied 9.7% from October 27 to October 29, reaching a high of $73,575, before recovering to retest the $71,500 level on October 30. Despite Bitcoin's price correction, several indicators — including derivatives market activity, onchain metrics, and stablecoin demand — point to a solid foundation for a further rally above $73,000 in the near term.

However, Bitcoin's futures premium—a key measure of pent-up demand—reflects strong confidence from bullish investors.

In neutral market conditions, monthly futures contracts usually carry an annual premium of 5% to 10% with long settlement periods. Currently, the 13% premium is at its highest level in more than four months, although there is no apparent weakness, although Bitcoin has declined at $73,575.

Bitcoin prices closely followed gold, which initially rose to an all-time high of $2,790 on October 30, but later lost some momentum.

Gold's pullback was partly due to macroeconomic data released on Oct. 30, such as the U.S. personal payrolls report, which showed an increase of 233,000 jobs in October. Additionally, the U.S. Bureau of Economic Analysis projected third-quarter GDP growth at 2.8 percent, down slightly from 3 percent growth in the previous quarter.

This economic resilience reduces the likelihood of more aggressive interest rate cuts by the Federal Reserve, reducing demand for alternative assets such as gold and bitcoin.

Additionally, a strong economy does not necessarily increase demand for US government bonds. Raising public deficit concerns, the cost of servicing government debt has risen, with the yield on 5-year US Treasuries rising to 4.1% from 3.5% last month.

Bitcoin onchain and derivatives indicators indicate optimism

Given the continued uncertainty over the outcome of US macroeconomic policies, Bitcoin's persistence during the short-term price reversal should come as no surprise. Still, in terms of exchange net flows, on October 29 when the price of Bitcoin topped $70,000, there was a wave of deposits, indicating the desire of some traders to profit at these levels.

According to Glassnode data, however, this trend reversed on October 30, with net outflows becoming dominant. While some traders initially sold Bitcoin near all-time highs, this move was short-lived and within normal trading expectations.

Stable coin demand in Chinese markets provides additional insight into confirming sentiment. Strong demand for cryptocurrencies tends to push the price of Storcoin to a 2% premium over the US dollar, but the discount often reflects fear as traders exit the crypto market.

Related: Bitcoin ‘Trump hedge' rally misses all-time highs in macro conditions

According to data, China's stablecoin premium remains in the neutral range, slightly down from 0.7% to 0.3%. Despite Bitcoin's $2,140 correction on October 30, this data indicates market strength. Additionally, when combined with onchain metrics and derivatives indicators, there is plenty of evidence to suggest that traders are confident in Bitcoin's ability to continue its uptrend in the near term.

This article is not intended for general information purposes and should not be construed as legal or investment advice. The views, ideas and opinions expressed herein are solely those of the author and do not necessarily represent the views and opinions of Cointelegraph.