Bitcoin (BTC) hit a new month-to-date high on September 18, with a strong weekly close solidifying a bullish start to trading on Wall Street.
Traders warn about surge in Bitcoin open interest
Data comes from Cointelegraph Markets Pro and trading view The price of BTC rose by more than 3% that day, and Bitcoin exceeded $27,000 for the first time in September.
With the opening on Wall Street looming, market participants are eyeing a return of “momentum” for Bitcoin bulls.
“Bitcoin price broke through the $26,800 mark and hit highs of $27,200,” said Michaël van de Poppe, founder and CEO of trading firm 8. Summarize.
“The trend seems to be up from here as altcoins are also waking up. Still the best time to buy the asset.”
Van de Poppe uploaded his latest analysis chart to X (formerly Twitter), showing the area of resistance needed to pull back now.
Meanwhile, Monitor Resources Materials indicators are showing daily buy signals on its proprietary trading instruments.
“Bulls appear to be gathering some momentum since the opening of the D candle,” part of the accompanying commentary read.
renew: #BTC The bulls appear to be gathering some momentum since the opening of the D candle. Both trend prediction algorithms flash new ⬆️ signals in the daily TF. Closing prices below $26,414 will be invalid. pic.twitter.com/KSAP6e0tjt
— Material Indicators (@MI_Algos) September 18, 2023
Elsewhere, cautious Daan Crypto Trades said open interest was swelling, with open interest back up after a brief surge in Bitcoin prices after asset manager Grayscale won a legal battle with US regulators. level.
#bitcoin Open interest has increased wildly over the past few hours.
Up $850 million in a few hours.
This could become an issue if spot bids disappear, which could lead to a complete rollback similar to before.
This will be caused by entering an underwater position near the top. if… pic.twitter.com/PmQOvVt7Gw
— Daan Crypto Trades (@DaanCrypto) September 18, 2023
Meanwhile, trader and analyst Rekt Capital calls for bulls to win back higher levels and hold them until September’s monthly close.
“About $27,100 (black) will be revisited soon,” he forecast Next to the chart for the day.
“This level was support earlier this year and may turn into new resistance this month unless BTC closes the month above the black line to reclaim this level.”
BTC Price Further Ignores DXY Strength
As the Federal Reserve’s interest rate decision on September 20 approaches, the focus of macro topics has focused on preparations for this event.
Related: FOMC and BTC Price ‘Partial Bottom’ – 5 Things to Know About Bitcoin This Week
The U.S. Dollar Index (DXY) continued to strengthen on the day despite the assumption that interest rates will not rise later this week.
The U.S. dollar index is hovering above 105, breaking that level for the first time since mid-March.
Bitcoin, which has traditionally been negatively correlated with the index, still shows no signs of weakness.
“Bitcoin hits $27,000 while DXY is above 105,” said James Straten, research and data analyst at cryptocurrency insights firm CryptoSlate. famous There is also a comparison chart next to it.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
“DXY last traded at 105 in March when Bitcoin was trading at less than $20,000. The time before that was Q4 2022 when #Bitcoin was trading at $17,000.”
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