- The Bitcoin price surged past $27,400 hinting at a bullish reversal, however, the surge in open interest flashes caution.
- The Bitcoin market dominance surged past 50% again, with analysts believing that it could rise even higher.
The world’s largest cryptocurrency Bitcoin (BTC) made strong moves on Monday, September 18, with its price rallying all the way past $27,400 levels. As Wall Street’s opening approached, market participants kept a close watch on the resurgence of “momentum” among Bitcoin bulls.
Popular crypto analyst Michael van de Poppe stated:
Bitcoin price breaks the barrier at $26,800 and attacks the highs at $27,200. Trend looks like to be upwards from here, as altcoins are also waking up. Still the best period to buy your assets.
Material Indicators, a monitoring resource, also detected daily buy signals on its proprietary trading instruments. The accompanying commentary noted, “Bulls appear to have gathered 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
However, some of the other market analysts have maintained a cautious view. Daan Crypto Trades highlighted a significant increase in open interest, reaching levels last seen after Grayscale’s victory over the US SEC. Open interest has surged significantly over the past few hours, increasing by more than $850 million in just a short span of time.
However, this rapid increase could become problematic if the demand for spot bids suddenly diminishes, potentially leading to a complete retracement similar to what we’ve seen in the past. Such a retracement would likely be caused by traders who entered positions near the market’s peak and are now facing losses. The outcome largely depends on the stability of spot bids in the market, added Daan Crypto.
#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
Bitcoin Price Dominance Shoots to 50%
Over the past month, Bitcoin (BTC) has shown relatively stagnant performance, with its current price hovering around $26,700, almost unchanged from 30 days ago. During this time, Bitcoin’s market dominance, which measures its share of the total cryptocurrency market, has been steadily increasing. It recently reached 50.2%, marking its highest level in a month and coming close to the 26-month peak of 52% observed at the end of June.
To provide context, Bitcoin’s market dominance remained within a range of 39% to 49% for over two years before breaking out to the 52% level in June. This surge followed after asset manager BlackRock applied for a spot BTC exchange-traded fund, sparking optimism about substantial capital inflows into Bitcoin.
Markus Thielen, the head of research at crypto services provider Matrixport, highlighted the potential for increased buying pressure on BTC due to ETF listings. Meanwhile, alternative cryptocurrencies, often referred to as altcoins, face potential downward pressure. Thielen pointed to factors such as token sales by the bankrupt exchange FTX, declining revenue in the Ethereum protocol, and upcoming token unlocks as risks that could affect the altcoin market.
Chances of a potential spot Bitcoin ETF have sparked the BTC price predictions to $42,000. After yesterday’s price jump above $27,400, Bitcoin has entered partial retracement and is currently trading at $26,900 levels.
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