Bitcoin displays strong technicals for new record high as futures open interest hit $13 billion

Published January 15, 2021 | Updated January 15, 2021

Bitcoin displays strong technicals for new record high as futures open interest hit $13 billion

  • Bitcoin retests $40,000 after recovery almost 30% in two days.
  • Bitcoin open interest increases 74% from the previous month, suggesting high investor optimism.

Bitcoin has brushed shoulders with $40,000 again following the early week breakdown to $30,000. The pioneer cryptocurrency has presented a strong bullish front in the last couple of days by first, holding above $32,000 and second, breaking the stubborn resistance at $36,000.

BTC/USD extended the bullish action above the crucial level at $38,000, encouraging investors to join the market and increase their positions. At the time of writing, BTC is teetering at $39,525 after facing resistance at $40,000.

The main priority among the bulls is to hold above $39,000 and keep the focus on trading a new record high, perhaps beyond 42,500. This ongoing bullish trend seems strong enough, especially with Bitcoin having reclaimed the ground above the 50 Simple Moving Average.

Moreover, the Relative Strength Index is not yet overbought, which suggests that Bitcoin has more room for growth before a reversal is warranted. However, the low trading volume hints that recovery will be gradual in the coming sessions.

BTC/USD 4-hour chart

BTC/USD price chart
BTC/USD price chart by Tradingview

Bitcoin’s near 30% recovery occurred despite the massive $1.5 billion liquidations in a single day. Nonetheless, futures traders seem to have come back with a bang suggesting that investors are quite optimistic.

According to data provided by Bybt.com, Bitcoin open futures hit an all-time high of $13 billion on January 14. This represents a 74% increase from the figures recorded in the previous month.

Bitcoin futures trading

Bitcoin open futures trading
Bitcoin open futures trading by Bybt.com

The surge in futures trading suggests a couple of things: Either traders are great risk-takers and are unbothered by the wild price swings or the majority of the trading activity comes from hedge and arbitrage trading. Meanwhile, it is clear that the exceptional volatility had done little to scare futures traders in the market while the increase in open interests hints at high bullish optimism.

Bitcoin intraday levels

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Spot rate: $39,145

Relative change: -75

Percentage change: -0.1%

Trend: Bearish

Volatility: Low

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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John Isige 1057 Articles
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