Bitcoin Price Analysis: Is BTC Going To $70,000 With Open Interest Reaching $24.5B?

Bitcoin price analysis: The largest cryptocurrency suddenly broke out on Monday following a period marked by market doldrums. In the initial February rally, Bitcoin price made it above $50,000 with the leg extending to $53,000.

Due to the lack of momentum to keep the uptrend going and perhaps in good faith of allowing re-accumulation, BTC price consolidated above support at $50,800.

As CoinGape analysed, a bullish rectangle pattern coupled with other positive market forces — the Bitcoin ETF and growing institutional risk appetite, pushed BTC out of consolidation, where it rallied to $57,000.

Why Is Bitcoin Price Breaking Out?

Bitcoin has in the last 24 hours sustained a 10.5% positive price change to trade at $56,440 at the tail end of the European hours on Tuesday. The massive uptick in price can be attributed to several factors or market forces.

On Monday, Michael Saylor, the founder and chairman of MicroStrategy (MSTR) announced that his company had added to its balance 3,000 more BTC worth approximately $155 million “at an average price of $51,813” per token.

According to Saylor, MicroStrategy currently holds 193,000 BTC, purchased for approximately $6.09 billion, bringing the average DCA price per Bitcoin to $31,544.

MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P

— Michael Saylor⚡️ (@saylor) February 26, 2024

Although MicroStrategy had been buying the 3,000 BTC in batches since January, the was a catalyst, drastically changing the outlook of the market. A commendable 8% surge in the total cap to $2.25 trillion has been achieved 24 hours later.

Despite the uptick in price, the Bitcoin dominance holds at 49.4% implying that altcoins are catching momentum. According to Rekt Capital, an analyst, capital is expected to flow from Bitcoin to Ethereum and later transition to large-cap altcoins, mid-cap altcoins, and later to small-cap tokens. As this redistribution of funds gains momentum, Bitcoin dominance may face some turbulence. Bitcoin currently boasts $1.1 trillion in market cap.

#BTC is rallying$ETH is rallying

Some Large Caps are already picking up

Then Mid-Caps

And then Small-Caps$BTC #Crypto #Bitcoin pic.twitter.com/NBbfB5eEDr

— Rekt Capital (@rektcapital) February 27, 2024

Also propping BTC to rally is the impressive outlook and demand for ETFs. Since products launched in the US in January, the segment has achieved $6.15 billion in cumulative total net inflow, SoSoValue data shows.

Demand for the ETF shows that investors have a long-term bullish outlook. This in conjunction with the upcoming Bitcoin halving in April, points to a parabolic rally towards the end of the year.

For that reason, investors are willing to take early positions to capitalise on the potential explosive rally.

Recommended for you: 3 Layer 1 Crypto To Buy For March As Bitcoin Tops $57,000

BTC Bulls Look To Uphold Higher Support

Bitcoin climbed above $57,000 but immediately retraced to trade at $56,440 at the time of writing. A higher support is expected to keep the uptrend intact, preferably at $56,000.

Another accumulation at that level would provide Bitcoin with the necessary momentum to keep rising amid anticipation of a larger breakout to $60,000. Key levels traders would be looking out for include the next key resistance at $58,000 and the medium-term goal of $60,000.

The Moving Average Convergence Divergence (MACD) backs the bullish thesis in the meantime. Therefore, traders would prefer to seek more exposure to BTC, thus strengthening the momentum. Besides, the massive surge in the derivatives market open interest to $24.5 billion according to Coinglass reinforces the bullish sentiment among investors who at the moment, believe Bitcoin price may soon top $70,000.