The Bitcoin price is sustaining its bullish momentum from the previous day. Today, it surpassed the $27,000 threshold, a level not seen since August 31. Notably, BTC recorded its first green weekly closing candle in five weeks yesterday. As of press time, the Bitcoin price has reached an intra-day high of $27,267.
Why Is Bitcoin Price Up Today?
One major indicator that has captured analysts’ attention is the rapid increase in Open Interest. DaanCrypto, a noted figure in the crypto space, commented on the Open Interest of Bitcoin: “Bitcoin Open Interest has been ramping up like crazy these past few hours. Up +$850M in hours.” According to him, 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 spot bid remains then these positions are obviously fine. Open Interest is now back to post Grayscale pump levels,” Daan stated, further noting the resilience in the spot premium at the moment, “Longs are comfy as long as spot bid is present.”
Maartuun, the community manager at CryptoQuant Netherlands, also highlights the rapid surge in Open Interest: “Fasten your seat belts. The Open Interest goes bonkers on this break-out attempt. It has increased by $600 million (7%).”
Interestingly, Coinglass data reveals that as of press time, short liquidations for BTC remain modest, with just about $20 million in shorts being liquidated. At press time, OI skyrocketed further, up almost $1 billion (from $11.04 to $12.03 billion).
Renowned analyst @52kskew emphasized the trading behavior on Binance: “Majority chasing shorts aggressively from what I can see so far. Binance Open Interest: Binance perp OI starting to moon again with minimal price difference ~ big move brewing. OI up and insignificant change in perp delta (positions opening into price). Takers still aggressively selling into price, bulls want to see constant limit chasing on the bid here. $26.7K pivotal price for direction.”
Ali Martinez, another analyst, pointed towards Bitcoin’s 3-day chart and noted a buy signal by the TD Sequential yesterday. “A boost in $BTC buying pressure might drive prices to the channel’s mid or upper boundary – targeting $28,000 or $31,000. Still, watch the TD Risk Line at $24,500. It’s the key invalidation point.”