As the sun sets on another volatile week for Bitcoin, traders are preparing for yet another ride in the upcoming days. As the open interest (OI) metric has touched its 1-year high, Bitcoin (BTC) is on the edge of seeing significant price volatility, and it’s looking towards the $30K mark next week.
Traders Are Unhappy With SEC
Bitcoin traders are currently dissatisfied with recent price movements, especially given the price’s failure to cross the $30,00 threshold in the past few weeks. This disappointment deepens as many applications for spot Bitcoin exchange-traded funds (ETFs) are experiencing delays or remain under regulatory scrutiny.
Interestingly, there’s been a marked increase in open interest (OI) for Bitcoin futures contracts, suggesting a heightened demand from institutional investors. According to CryptoQuant’s data, the OI metric is currently trading at $10 billion after touching nearly 1-year high of $10.4 billion recently. This level was last seen in 2022’s November when BTC price broke above the $20K mark.
However, the price couldn’t maintain its upward momentum because of FTX’s downturn that time. Now the same level has been reached again and traders are optimistic about a potential bullish comeback next week.
Open interest refers to the total number of outstanding derivative contracts, such as futures and options, that haven’t been settled. A surge in this figure suggests an increased activity in the market and can be a precursor to potential price movements, especially when combined with volume.
The fact that Bitcoin’s open interest has hit a 1-year high is a strong indicator that traders are increasingly hedging their positions or speculating on the price movement. It’s a sign that the market is gearing up for a significant move toward its psychological level of $30K.
What’s Next For BTC Price?
Bitcoin attempted to surge past the $30K level this week but failed to gain buying momentum near higher levels as bears are taking advantage of upticks to sell. As of writing, BTC price trades at $29,424, surging over 0.1% in the last 24 hours.
The price variance of the BTC price has become narrower, consolidating between $29,300 and $29,500. With both moving averages leveling off and the relative strength index (RSI) hovering around the midpoint, it hints that this sideways movement might continue for a while.
Predicting the breakout’s direction is challenging when prices remain within such a tight range. Nevertheless, traders should anticipate a clear move next week.
A dip below $29,100 could push the price towards the range bound zone between $28,300 and $28,700. On the flip side, if the price breaks and holds above $30,200, it might set the stage for a rise to $31,500. Clearing this barrier could pave the way for an ascent to $32K.
