Bitcoin’s Price Stabilization: A Bullish Outlook?
As the week progresses, Bitcoin’s price is beginning to show signs of stability after a turbulent start. On Friday, March 14, the leading cryptocurrency exhibited a resurgence in bullish activity, managing to climb the charts and briefly surpass the $85,000 mark as the week concluded.
Alongside the price movement, Bitcoin’s open interest (OI) has been following a similar upward trajectory. This trend raises a pertinent question: Is Bitcoin’s bull run rekindling?
Understanding the Surge in Bitcoin Open Interest
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CryptoQuant community analyst, Maartunn, recently shed light on the increasing Bitcoin open interest through a post on the X platform. Open interest is a crucial metric that gauges the total capital invested in Bitcoin derivatives at any given time.
According to CryptoQuant’s data, Bitcoin’s OI experienced a substantial rise on Friday, reaching $27.9 billion. This notable increase signifies an over 13% jump, equating to more than $3.3 billion, from its recent low.
Typically, a rise in Bitcoin open interest indicates that investors are establishing new positions in the futures and options markets. It suggests that capital is being infused into Bitcoin derivatives, reflecting investor confidence or speculation on the cryptocurrency’s price trajectory. On the other hand, a decline in open interest indicates that traders are either closing their positions or facing liquidation.
The escalation in open interest can be considered a positive indicator for Bitcoin, especially if historical trends are considered. The influx of fresh capital into the market signifies a surge in investor sentiment, potentially leading to increased volatility. This heightened volatility could signal significant price movements for Bitcoin in the near future.
Forecasting Bitcoin’s Price Movements
Bitcoin’s price seems poised for a substantial upward shift. Tony Severino, a Chartered Market Technician, shared insights on the X platform, suggesting that Bitcoin could surge to approximately $95,000 in the coming days.
Severino’s projection is contingent upon Bitcoin reclaiming its 200-day moving average (MA). Should Bitcoin’s price close decisively above this MA, it could potentially advance to the 50-day MA, reaching the mid-$90,000 range.
As of the current writing, Bitcoin’s price hovers around $84,500, marking an almost 5% increase over the past 24 hours.
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