Bitcoin Suddenly Reclaims $31,000 as Open Interest Starts Exploding wafact

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Alex Dovbnya

This resurgence comes after a considerable boost of more than $300 million in open interest within a brief span of two hours

Bitcoin has once again risen above $31,000 amid a sudden upswing in open interest. 

Open interest, a measure of outstanding futures contracts that haven’t yet been settled, jumped more than $300 million in just two hours. This suggests a significant increase in trading activity and speculative interest in the cryptocurrency.

Analysts are pointing to a more violent price swing due to market suppression. The notion is that the longer and tighter a price is suppressed, the more dramatic the reaction when it eventually breaks free. This view aligns with the market activity seen today, which appears to be a bullish rebound after Bitcoin’s price had been under pressure.

According to Glassnode co-founder Yann Allemann, Bitcoin’s ascent above the $30,000 mark is a significant milestone, and the cryptocurrency now faces key resistance at the $30,500 level, according to market observer Negentropic. There is a rising buying pressure and the MACD (moving average convergence divergence), a trend-following momentum indicator, crossing above the “0” level suggests the momentum is shifting towards the bulls.

If Bitcoin can clear the hurdles of $32,500 and then $34,000, it could indicate a stronger bullish trend in the making.

In other developments, Dan Morehead, CEO of Pantera Capital, pointed out that Bitcoin’s correlation with the S&P 500 has returned to zero, meaning Bitcoin is moving independently of the broader stock market.

This decoupling could make Bitcoin an appealing hedge against potential volatility in these traditional markets.

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