Bitcoin continues to reign supreme as it recently surpassed the significant $31,000 mark, sparking a wave of bullish sentiment among investors and analysts. Bitcoin’s value surged beyond $31,000 on Monday following a tumultuous week of trading. This was influenced by news regarding applications for spot ETF funds and conjecture about their potential approval by the U.S. Securities and Exchange Commission.
Bitcoin’s Open Interest Surges Suddenly
Bitcoin’s price has once again surpassed the $31,000 mark, spurred by a sudden surge in open interest. Open interest, which represents the total number of unsettled futures contracts, experienced a leap of over $300 million within a mere two hours.
Market analysts attribute the intense price fluctuation to market suppression. The theory suggests that the longer and more forcefully a price is restrained, the more explosive the response is when it finally breaks loose.
Bitcoin experienced a dip on Friday due to concerns following a report that the SEC found several initial ETF filings to be incomplete. However, the Cboe exchange promptly resubmitted the forms later that evening. Despite apprehensions about potential negative news impacting the market, Ivo Georgiev, CEO of Ambire Wallet, believes that the momentum towards a $40,000 Bitcoin price should be relatively straightforward to achieve.
CoinShares, an investment company, reported on Monday that institutional investors persist in investing in digital asset products, with a total of $125 million being injected over the previous week. The firm further noted that the majority of these investments are concentrated on Bitcoin.
Keeping the current sentiments in mind, Bitcoin may soon reach the $40K mark. Katie Stockton, founder and managing partner of Fairlead Strategies, predicts that Bitcoin could escalate to $36,000 from its present trading price. This audacious forecast was made on CNBC’s “Squawk Box,” even in light of Bitcoin’s modest increase over the past week.
Will BTC Price Be Able To Break Above Upcoming Hurdles?
Bitcoin remains trading close to the significant resistance level of $31,000, indicating that investors are not rushing to realize profits as they expect a further upward movement. As of writing, BTC price trades at $31,032, surging over 1.8% in the last 24 hours.
Typically, a tight consolidation near a key resistance tends to break out on the upside. 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 maintain the price above $31,000, it’s likely that the BTC price will initiate the next phase of the uptrend. The bullish momentum could potentially push the price beyond the immediate resistance at $32,400. If this occurs, the pair may continue its upward trajectory toward $40,000.
For the bears to regain control, they would need to pull and keep the price below the 20-day EMA. This could lead the price to slide toward the support of $29.5K.