The key takeaways
-
Bitcoin Futures Open Interest has increased +7% over the past 30 days. This indicates a positive shift in sentiment.
-
The Bitcoin momentum indicator indicates that the long-side buying pressure on the market is increasing.
BitcoinBTCAs their aggregated strength increased, ), futures have shown renewed strength. open interest The (OI), which is the index of the overall market, has risen by +7% in the last 30 days. This marks the first uptick sustained since the 12% decline from May to June. This revival indicates a possible shift in sentiment as traders position themselves for an upward trend, as their appetites for volume and leverage increase.
A rising OI in conjunction with price is a sign of bullish momentum, as new capital will enter the market and support an upward trend. Bitcoin researcher Axel Adler Jr. said that an OI increase of more than 10% is needed to support a break out.
Adler Jr. noted Bitcoin Futures Market Power V2.0, an indicator that combines OI with funding rates and takers-side aggressiveness, is now at 22,000. Although the indicator’s score is still far away from the previous rallies that saw scores over 80,000, it does reflect a strong bullish sentiment and growing pressure on long side. This is the first positive indicator since May. A score of 20,000 or less signaled the bottom price in April.
Bitcoin Futures Positioning also flipped positiveThe net exposure to longs has risen from $27.4million. It is clear that this net bullish attitude has held over zero for the past 24 hours. As BTC consolidates around $108,000, traders have been gradually building up their long positions to prepare for a breakout.
Related: Bitcoin Bollinger Bands reach critical point ahead of ‘upside breakout’
You can see Bitcoin “equal lows” Dip below $107,000
Bitcoin’s weekly candle closed at its highest level, but it then fell to just $108,000. This formed a double-top in lower timeframes. Despite this dip, BTC still maintains its intraday support near the 200-day moving average on the hourly chart.
Before any further upward movement, it is likely that BTC will form a series of identical lows around $107,300. The term equal lows is used to describe price levels where BTC formed the same support level multiple times. This usually signals resting liquidity which traders can target in order to make a bigger move. BTC’s previous low of $107,300 is aligned with an older liquidity block in this instance, increasing the probability that traders will be on a hunt for stop-loss orders.
The fair value gap of $106,300 and $107,000 can be filled by a move under $107,000. Below $107,000, a swift and bullish response would be crucial, accompanied by strong buying absorption. This should push BTC above $108,000. A failure to act could lead to further losses below $105,000.
In contrast, a solid defense at $108,000 and a clear break above $109 500 would invalidate a narrative of equal highs. This could set up a rally this week above $112,000
Related: ‘False move’ to $105K? 5 things to know in Bitcoin this week
This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.
“This article is not financial advice.”
“Always do your own research before making any type of investment.”
“ItsDailyCrypto is not responsible for any activities you perform outside ItsDailyCrypto.”
Source: cointelegraph.com
