Yesterday, the cryptocurrency market performed well overall, with Bitcoin surging more than 5%. The sudden price increase has fueled optimism among investors and analysts, who expect Bitcoin to rise further in the coming months. Along with the price action, market sentiment is also improving, which has fueled hopes for a continued rise in Bitcoin. Key data from CryptoQuant shows that Bitcoin demand is rising, supporting the view that Bitcoin may continue to rise. This growing demand and improving market sentiment have created a favorable environment for bullish momentum. A continued recent price rise could set the stage for Bitcoin to set new highs, while any hesitation could lead to further consolidation. Regardless, market participants are eagerly awaiting the next big move.
Bitcoin open interest hits new high
After surging to local highs, Bitcoin is at a critical turning point, setting the stage for a potential rebound and making analysts and investors optimistic.
In less than a week, bitcoin prices have surged more than 12%, reflecting renewed bullish sentiment in the market. The upward momentum has raised hopes that bitcoin will continue to rise, with many speculating that a major breakthrough is imminent.
Top cryptocurrency analyst and investor Ali Martinez recently shared a striking CryptoQuant chart showing that Bitcoin open interest across all exchanges just hit a new all-time high of $19.75 billion.
A surge in open interest usually precedes a big price move, indicating increased market activity and more capital involvement. A surge in open interest suggests that traders are preparing for a major price action, which could add more fuel to the current rally.
CryptoQuant’s data supports Bitcoin’s growing bullish outlook as it suggests investors and traders are becoming more confident in the asset’s near-term performance.
If this momentum continues, Bitcoin could set new highs, paving the way for a broader market rally. The next few days will be crucial in determining Bitcoin’s direction as the market focuses on this critical moment.
BTC hits a new local high
Bitcoin is consolidating after surging to local highs yesterday and is currently trading at $65,600. The price is eyeing the key $66,500 resistance level, which, if crossed, could see Bitcoin set a new all-time high.
This resistance level has been a critical hurdle for Bitcoin and a successful break above it would confirm bullish momentum and could lead to further gains.
BTC is currently trading well above its 200-day moving average (MA) at $63,336, further solidifying the positive outlook for Bitcoin in the coming weeks. Staying above this moving average is a strong indicator that bulls are in control. The market is poised for a rebound.
However, for Bitcoin to continue to rise, it will have to surpass the $66,500 level and set a new high.
On the downside, if BTC fails to break above this resistance, a retracement to lower demand levels around $62,000 is possible, but this would still be a healthy correction within the broader uptrend.