Bitcoin price gained more than 3 percent as the week began. But concerns about open interest “rising” by almost $1 billion within hours are giving Grayscale a sense of deja vu. In this tense environment, analysts share their BTC predictions.
Analyst warns of rising Bitcoin open interest!
Latest data shows that the BTC price increased by over 3 percent during the day. Additionally, Bitcoin surpassed $27,000 for the first time in September. Market participants witnessed a return of “momentum” among Bitcoin bulls. Popular analyst Michaël van de Poppe, founder and CEO of trading firm Eight, shows on his latest analysis chart the resistance area now needed for recovery. Additionally, the analyst evaluates BTC’s latest movement as follows:
Bitcoin price broke the $26,800 barrier and reached a high of $27,200. Since altcoins are also waking up, the trend seems to be upwards from here. It’s still the best time to buy your assets.
BTC annotated chart. Source: Michaël van de PoppeSome analysts are cautious about the latest BTC bounce!
Meanwhile, tracking resource Material Indicators announces daily buy signals on its proprietary trading tools. In this context, he comments, “The bulls seem to have gained some momentum since the opening of the D candle.”
UPDATE: #BTC Bulls seem to have mustered some momentum since the D candle open. Both Trend Precognition algos are flashing new ⬆️ signals in the Daily TF. A close below $26,414 would invalidate. pic.twitter.com/KSAp6e0tjt
— Material Indicators (@MI_Algos) September 18, 2023
Elsewhere, a cautious Daan Crypto Trades points to ballooning open interest returning to last seen levels following brief Bitcoin price gains following asset manager Grayscale’s legal victory against US regulators. The analyst makes the following statement:
Bitcoin Open Interest has been rising like crazy over the last few hours. It rose by $850 million within hours. This could be a problem if the spot offer disappears, which could lead to a full reversal similar to the previous one. This will be due to submerged positions entering near the top. It is clear that if the spot price continues, there will be no problem in these positions. Open Interest has now returned to post-Grayscale pump levels.
#Bitcoin Open Interest has been ramping up like crazy these past few hours.
Up +$850M in hours.
This can be an issue if spot bid disappears which could cause for a full retrace similar to before.
This would then be due to underwater positions that entered near the top. If… pic.twitter.com/PmQOvVt7Gw
— Daan Crypto Trades (@DaanCrypto) September 18, 2023
This level is critical for Bitcoin!
Meanwhile, trader and analyst Rekt Capital says the bulls need to regain higher levels. It also states that they must hold them until the September monthly closing. In this regard, the analyst points to the following level:
It will soon revisit around $2.7100 (black). This level served as support earlier this year. Additionally, BTC could turn into a new resistance this month unless it pulls back with a Monthly Close above the black.
BTC annotated chart. Source: Rekt CapitalBitcoin price further ignores DXY strength
As you follow on Kriptokoin.com, the interest rate decision that the Fed will announce on September 20 is approaching. However, macro conversations also focused on the developments that took place before this decision. Meanwhile, the US Dollar Index (DXY) continued to strengthen during the day despite assumptions that interest rates will not rise later in the week. DXY exceeded this level for the first time since mid-March and remained above 105.
Bitcoin, which has traditionally been inversely correlated with the Index, nevertheless showed no signs of weakness. Crypto data analyst James Straten shares the following comment, along with a comparative chart:
Bitcoin reached $27,000 while DXY was above 105. The last time DXY traded at 105 was in March when Bitcoin was trading below $20,000. The time before this was the 4th quarter of 2022, Bitcoin was trading at $17,000.
BTC and DXY comparative chart. Source: James Straten“I will take action here before the train runs away!”
Analyst pseudonymous DonAlt says it is possible that Bitcoin will witness an upward breakout and leave many traders on the sidelines. In this context, the analyst makes the following assessment:
If we move up and break the resistance we’re currently struggling with, I think the target could be something like $36,000… If I can’t get a good entry at $30,000, there’s a chance I might not make a good entry. Because if this rocket launches, maybe it’s going to launch too fast for me to catch a good trade. So I’ll do an action here just to be sure. Worst case scenario, I take a small hit because the invalidation is so tight and then I can buy back at $19,000 to $20,000…We are experiencing constructive price action for the first time in months. However, we need to move up soon. Otherwise, I will take risks again.
Source: DonAlt
61902
