The crypto world is catching some steam: Bitcoin (BTC) reaches $27,400 as part of a 10% increase over the past week. Additionally, Open interest on BTC also increased by 10% in just 3 hours yesterday. However, this situation raises familiar feelings among investors, reminiscent of the temporary rally on August 29, which followed Grayscale’s victory against the SEC. Are we going to see a similar scenario?
Open interest on Bitcoin increases by 10%
On September 18, 2023, the price of Bitcoin (BTC) crossed the $27,400 mark again. This surge represents an increase of 3.4% for the day, and an increase of 5% for the month of September.
This surge is generating enthusiasm among the crypto community, as open interest on Bitcoin increased by 10% in just three hours yesterday.
According to the Coinglass chart data below, the total number of outstanding BTC futures contracts on September 18 even exceeds that of August 30.
It is to highlight that this increase in open interest had a negative impact on the price of Bitcoin towards the end of August. Indeed, we can clearly observe that the BTCUSD pair had decreased in value from August 30. This wiped out the 8% gains recorded following Grayscale’s decisive victory against the SEC.
This observation could suggest thata simple increase in open interest on Bitcoin is not enough to trigger a bull run. However, the minutes of the FOMC meeting on Thursday could change that.
Several crypto traders have expressed their perspectives regarding the evolution of the price of Bitcoin in the current context.
According to crypto trader Daan, this increase in open interest could pose a problem if buy-it-now offers disappear. If that is the case, this could result in a full retracement similar to before (August 30).
Then, in the latest update of his analysis, Michaël Van de Poppe thinks that Bitcoin price could move back and forth in the area between key moving averages and support at $24,756.
On another side, James V. Straten performed an analysis of Bitcoin against the Dollar Index (DXY) itself. In his analysis, DXY continues to strengthen over the past 24 hours, while BTC shows no signs of weakening. This divergence could be seen as a bullish signal for Bitcoingiven its negative correlation with the dollar.
Finally, RektCapital believes that it would be the monthly close above $26,984 that would be the bullish signal for BTC.
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