Bitcoin Is Pumping Hard To $28K Following $1 Billion Surge In Open Interest! What’s Next For BTC Price?
In an unexpected surge, Bitcoin has been pumping hard in recent hours, smoothly breaking through key resistance levels and setting its sights on the $28,000 milestone. This impressive upswing comes following a $1 billion increase in open interest across multiple cryptocurrency exchanges. Yet, investors are left wondering if this is a sign of increased volatility in anticipation of the upcoming FOMC meeting.
Surge In Bitcoin’s Trading Activity And Open Interest
In spite of the news about FTX’s cryptocurrency liquidation and the forthcoming bearish announcement on interest rates from the U.S. Federal Reserve, Bitcoin has maintained strong buying support at key levels, as seen in its daily price chart.
Per data analyzed by Coinpedia, Bitcoin has experienced a significant surge in trading activity in recent hours, with the open interest metric soaring past the $1 billion mark. The spike in open interest to over $1 billion suggests that there is a heightened level of trading interest in Bitcoin currently. Moreover, there’s a spike in call options for Bitcoin, hinting at a bullish sentiment in the market after the BTC price broke $26.5K level.
Today, Bitcoin experienced a significant short liquidation, with over $30 million in put positions being liquidated. This event boosted buyers to initiate new long positions from resistance levels, thereby generating increased buying demand in the market.
According to Glassnode, new Bitcoin addresses have reached a five-year high of 26,808, signaling growing investor interest. Additionally, Bitcoin’s transaction count has hit a four-month peak at 23,724. The surge in new addresses usually points to new market entrants and could imply rising demand for Bitcoin, potentially setting a long-term bullish scenario and higher prices.
What’s Next For BTC Price?
Bitcoin broke past its EMA trend lines today as buyers aggressively bought the dip of $26.5K, signaling a decrease in selling pressure. Since that point, bullish forces have successfully countered multiple bearish attempts to pull the price back under the 20-day EMA. As of writing, BTC price trades at $27,303, surging over 3% from yesterday’s rate.
Buyers are currently capitalizing on this momentum as they aim to surge past the upcoming resistance of $28,178. While this level could pose a minor challenge, overcoming it could set the stage for a rally to $30.5K, a level the bears are likely to defend.
For bears to regain control, they’ll need to push the price back below the 20-day EMA, potentially trapping bulls and triggering a possible retest of the crucial $26,330 support level.
On the 4-hour chart, the RSI trend line has surged above the overbought region, currently trading at 77. This might bring downward volatility as the price recently faced a slowdown near the high of $27,500. A break below $26.3K will plunge the Bitcoin price toward the support range of $24,800-$25,400.