Bitcoin prices have maintained the bullish trend of the previous day. Today, it broke the $27000 mark, the highest level since August 31st
Bitcoin prices have maintained the bullish trend of the previous day. Today, it broke the $27000 mark, the highest level since August 31st. It is worth noting that BTC recorded its first green week closing candle in five weeks yesterday. As of press release, the price of Bitcoin has reached its intraday high of $27267.
Why is Bitcoin prices rising today?
A major indicator that has caught the attention of analysts is the rapid increase in open positions. Daan Crypto, a well-known figure in the cryptocurrency industry, commented on Bitcoin's open contracts: "In the past few hours, Bitcoin's open contracts have increased wildly. Within a few hours, they have risen by $850 million." According to him, if spot bids disappear, this could become a problem, which could lead to a comprehensive retreat similar to before.
This may be due to the underwater position entering the vicinity of the top. If spot bids still exist, then these positions are clearly not a problem. The open positions have now returned to the level after the grayscale rise, "Daan said, further pointing out the elasticity of the current spot premium." As long as there is spot buying, long positions are very comfortable
Bitcoin Open Contract | Source
Maartuun, the community manager of CryptoQuant Netherlands, also emphasized the rapid growth of open positions: "Fasten your seat belt. Open positions became crazy in this breakthrough attempt. They increased by $600 million (7%)
Interestingly, Coinglas data shows that as of the time of publication, BTC's short liquidation scale is still small, with only about $20 million in short liquidation. As of the time of publication, OI has further surged, increasing by nearly $1 billion (from $11.04 to $12.03 billion).
Famous analyst @ 52kskew emphasized the trading behavior of Coin An: "As far as I know, most people are actively chasing short positions. Coin An's open positions contract: Coin An PerpOI once again starts landing on the moon with the smallest price difference~The big move is brewing. OI is rising, and Perpdelta has not changed much (holding price). The receiver is still actively selling at the price, and bulls hope to see continuous buying here. $26700 is the key price in the direction
Another analyst, Ali Martinez, pointed out the 3-day chart of Bitcoin and noted that TDSequential issued a buy signal yesterday. The increase in purchasing pressure on Bitcoin may push prices towards the middle or upper boundary of the channel - with a target of $28000 or $31000. However, please be aware of the $24500 risk line. This is a critical failure point
From a macro perspective, renowned analyst Ted (@ tedtalksmacro) pointed out the correlation between US dollar liquidity and Bitcoin price trends: "If you can track/predict US dollar liquidity, you will have a clear understanding of price trends." He then emphasized the divergence between the growth of US dollar liquidity and Bitcoin's previous stagnation, and emphasized that the recent shift may be driven by a return to liquidity.
Monthly settlement will be crucial
According to NewsBTC, September was one of the worst months of the year for Bitcoin prices in history. However, if Bitcoin continues to maintain the trend of the past few days, this year may be different.
In a recent tweet, RektCapital emphasized the potential significance of Bitcoin's upcoming monthly candle closing price and stated, "The upcoming monthly candle closing price will be crucial." This analyst stated that when Bitcoin transforms its old monthly support level into a new resistance level, it typically produces a growing upward shadow.
In short, the upward wick on the candlestick chart represents the price level of Bitcoin that has been traded but not closed over a period of time. The long shadow line indicates a strong rejection of higher price levels. This may mean that although the buyer attempted to push up the price this month, by the end of the trading day, the seller had pulled the price down, leaving a long 'wick' on the candlestick.
RektCapital suggests that these shadows can extend up to+8% beyond the candlestick. Analysts point out that if the monthly candle closing price generates a+7% upward shadow line above the $27100 level, it may mean that the price may exceed the lower weekly high.
If the monthly closing price remains above $27100, it may be a positive signal that it is a support level. However, if the price closes below $27100 after reaching a higher level, it may confirm that $27100 is a new resistance level, indicating that the recent price trend may only be a temporary upward rebound.
As of the time of publication, the BTC price was $27241.
BTC rises above $27000, 4-hour chart
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