Bitcoin continues to reign supreme as it recently breached the $31,000 mark, sparking a wave of bullish sentiment among investors and analysts. Bitcoin’s value surged past $31,000 on Monday after a tumultuous week of trading. This was influenced by news about applications for spot ETFs and speculation about their potential approval by the U.S. Securities and Exchange Commission.
Bitcoin Open Interest Suddenly Rises
The price of Bitcoin once again broke above the $31,000 mark, boosted by a sudden increase in open interest. Open interest, which represents the total number of unsettled futures contracts, jumped more than $300 million in just two hours.
Market analysts attribute the intense price fluctuation to market suppression. The theory suggests that the longer and more forcefully a price is held, the more explosive the response when it finally unleashes.
Bitcoin fell on Friday amid concerns over a report that the SEC found several initial ETF filings to be incomplete. However, the Cboe scholarship quickly resubmitted the forms later that evening. Despite apprehensions about potential negative news impacting the market, Ivo Georgiev, CEO of Ambire Wallet, believes that momentum towards a Bitcoin price of $40,000 should be relatively simple to achieve.
CoinShares, an investment firm, reported on Monday that institutional investors persisted in investing in digital asset products, with a total of $125 million injected in the previous week. The firm further noted that the majority of these investments are focused on Bitcoin.
Keeping current sentiments in mind, Bitcoin may soon hit the $40,000 mark. Katie Stockton, founder and managing partner of Fairlead Strategies, predicts that Bitcoin could surge to $36,000 from its current trading price. This bold prediction was made on CNBC’s “Squawk Box,” even in light of Bitcoin’s modest rise over the past week.
Will the BTC price be able to overcome the hurdles ahead?
Bitcoin remains near the significant resistance level of $31,000, indicating that investors are not rushing to take profits as they expect further upward movement. At the time of writing, the price of BTC is trading at $31,032, up over 1.8% in the past 24 hours.
Typically, a tight consolidation near key resistance tends to break out higher. The rising 20-day exponential moving average at $30,647 and the Relative Strength Index (RSI) in the positive zone suggest that Bitcoin is poised to continue its uptrend.
If the bulls manage to drive and hold the price above $31,000, it is likely that BTC price will initiate the next phase of the uptrend. The bullish momentum could potentially push the price past the immediate resistance at $32,400. If that happens, the pair may continue its upward trajectory towards $40,000.
For the bears to regain control, they would have to pull and hold the price below the 20-day EMA. This could drag the price towards the $29.5,000 support.
