• Advertise
  • Submit a Press Release
  • About Us
NewsBTC
Bitcoin & cryptocurrency news
Sensei Inu Logo
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Breaking News: BREAKING: Valkyrie Secures Green Light For Ethereum Futures ETF, Trading Launching Tomorrow
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play GamesTry
  • Win 8.88 BTCTry
  • Play Casino GamesTry
  • Play FinanceTry
No Result
View All Result
Bitcoin News
No Result
View All Result
Breaking News: BREAKING: Valkyrie Secures Green Light For Ethereum Futures ETF, Trading Launching Tomorrow
Sensei Inu Logo

Record-Breaking $10 Billion Open Interest Fuels Bullish Speculation For Bitcoin Reversal

Ronaldo Marquez by Ronaldo Marquez
2 months ago
in Bitcoin News
Reading Time: 3 mins read

The cryptocurrency market has experienced a period of stagnation, with Bitcoin (BTC) trading within a narrow range for the past week. 

However, according to market analyst Ali Martinez, there is a glimmer of hope on the horizon as Open Interest, a key indicator of market sentiment, has skyrocketed to a year-to-date high.

Correlation Between Open Interest And Bitcoin

Notably, the correlation between Open Interest and Bitcoin’s price has historically been significant, suggesting that this surge may herald a potential reversal in the leading cryptocurrency’s fortunes. 

Martinez believes the recent dip to $28,700 prompted crypto traders to take long positions, fueling optimism for a Bitcoin resurgence.

Bitcoin
BTC’s Open Interest on all exchanges. Source: Ali Martinez on X.

Over the past week, the overall crypto market has experienced a period of stagnation, with Bitcoin trading within a tight range of $28,900 to $29,200. 

This consolidation follows a continuous decline from its yearly high of $31,800, which has also set the tone for other major cryptocurrencies. The lack of significant price movement has left investors and traders eager for a catalyst that could propel the market forward.

Related Reading: Is Curve DAO (CRV) Price On Track To Reach Or Exceed $1 This Month?

Nevertheless, the number of open long and short positions on crypto derivative exchanges has surged to a remarkable year-to-date high of $10.086 billion. This surge in Open Interest is significant, indicating heightened market activity and trader engagement.

One crucial aspect to consider is the historical correlation between Open Interest and the price of Bitcoin. This relationship has often been strong, with Open Interest as a leading indicator for potential price movements.

As Open Interest reaches new highs, it suggests that market participants are actively taking positions in anticipation of a significant market shift.

While the crypto market has been characterized by stagnation and decline in recent times, the surge in Open Interest to a yearly high provides hope for a bullish reversal. 

Bearish Divergence Signals Potential Pullback For BTC

Bitcoin has recently exhibited some intriguing patterns that warrant attention from both technical analysis and on-chain analysis perspectives. 

According to Baro Virtual, CryptoQuant author and analyst, a bearish divergence on the BTC Average Return Index suggests a possible pullback to $26,000. 

Bitcoin
BTC’s current potential accumulation zone. Source: BaroVirtual on X.

Simultaneously, on-chain analysis indicates a weakening return index performance alongside a rising Bitcoin price, potentially signaling a phase of re-accumulation that may benefit investors seeking lower prices. 

The transition of the return index into the negative zone suggests a shift in market sentiment towards re-accumulation. 

Related Reading: Terra Luna Token Burn Proposal Greenlit – Could $1 Be Hittable?

Re-accumulation typically occurs when long-term investors or institutions acquire Bitcoin at lower prices, anticipating future price appreciation. This behavior can be seen as a positive sign for the market’s long-term health, reflecting increased interest from strategic investors.

Bitcoin
BTC’s uptrend on the 1-day chart. Source: BTCUSDT on TradingView.com

As of the current update, BTC has broken out of its range which has persisted since the beginning of August. It is trading at $29,600, reflecting a 2.5% increase over the past 24 hours.

However, the upward price movement of BTC in the short term may not be sustained unless accompanied by substantial trading volume. Several significant resistance levels lie ahead, posing challenges for BTC’s attempt to reclaim the $30,000 milestone.

To begin with, the $29,700 zone presents a formidable barrier, followed by subsequent resistance walls at $30,000, $30,700, $31,200, and $31,500. In the short and mid-term, BTC, the largest cryptocurrency in the market, will need a compelling catalyst to push beyond these levels. Without such, a retracement is possible in the coming weeks. 

Featured image from iStock, chart from TradingView.com

Tags: bitcoinBitcoin newsbitcoin priceBTCUSDTcrypto
Tweet123Share196ShareSend
Ronaldo Marquez

Ronaldo Marquez

Ronaldo is a seasoned crypto enthusiast with over four years of experience in the field. He is passionate about exploring the vast and dynamic world of decentralized finance (DeFi) and its practical applications for achieving economic sovereignty. Ronaldo is constantly seeking to expand his knowledge and expertise in the DeFi space, as he believes it holds tremendous potential for transforming the traditional financial landscape.

Related Posts

Bitcoin Price To Reach $170,000 in 2025 – Mathematical Model Predicts

Bitcoin Price To Reach $170,000 in 2025 – Mathematical Model Predicts

2 days ago
Bitcoin (BTC)

Bitcoin Eyes Turnaround: Could A New All-Time High Be On The Horizon? Analyst Predicts

2 days ago
Bitcoin Bull

This Bullish Combination Has Finally Formed For Bitcoin, Rally Ahead?

2 days ago
Bitcoin

Bitcoin Surge Above $27,000 May Not Last, Here’s Why

3 days ago
Bitcoin news BTC BTCUSDT BTC Price

Bitcoin News: BTC Price Drops To $2,700 On Binance, CZ Explains Why

3 days ago
BlackRock Spot Bitcoin ETF

$9 Trillion BlackRock Sees Bitcoin Spot ETF Approval Delayed, What This Means

3 days ago

Premium Partners

Play Finance

Top Casinos

BitStarz

BitStarz

Review · Visit
Punt Casino

Punt Casino

Review · Visit
Trust Dice

Trust Dice

Review · Visit
mBit

mBit

Review · Visit

Press Releases

  • Investing in Trading 212: Is the Risk Worth the Reward?

    2 days ago
  • Bitcoin Spark: Cross-Chain with Polygon, BSC, and Cosmos

    3 days ago
  • Explosive Surge: Curve DAO and Everlodge on a Wild Pumping...

    3 days ago
  • The DeFi Big Three: Solana (SOL), Chainlink (LINK), and...

    3 days ago
  • Plus 500 Reviews Get Moderate Risk Rating From Trading...

    3 days ago

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

Company

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

© 2023 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
    • Research
    • Gambling
      • Crypto Casinos
      • Real Money Casinos
    • Casinos not on Gamstop
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Learn
    • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
    • Categories
  • Events
  • Play Games
  • Win 8.88 BTC
  • Play Casino Games
  • Play Finance

© 2023 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.