Why Is Bitcoin Price Up Today? BTC Climbs Above $27,000

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The Bitcoin worth is sustaining its bullish momentum from the day gone by. Today, it surpassed the $27,000 threshold, a stage not seen since August 31. Notably, BTC recorded its first inexperienced weekly closing candle in 5 weeks yesterday. As of press time, the Bitcoin worth has reached an intra-day excessive of $27,267.

Why Is Bitcoin Price Up Today?

One main indicator that has captured analysts’ consideration is the speedy improve in Open Interest. DaanCrypto, a famous determine within the crypto house, commented on the Open Interest of Bitcoin: “Bitcoin Open Interest has been ramping up like crazy these past few hours. Up +$850M in hours.” According to him, this may be a difficulty if spot bid disappears which may trigger for a full retrace much like earlier than.

“This would then be due to underwater positions that entered near the top. If spot bid remains then these positions are obviously fine. Open Interest is now back to post Grayscale pump levels,” Daan said, additional noting the resilience within the spot premium in the mean time, “Longs are comfy as long as spot bid is present.”

Bitcoin Open Interest | Source: X @DaanCrypto

Maartuun, the group supervisor at CryptoQuant Netherlands, additionally highlights the speedy surge in Open Interest: “Fasten your seat belts. The Open Interest goes bonkers on this break-out attempt. It has increased by $600 million (7%).”

Interestingly, Coinglass knowledge reveals that as of press time, quick liquidations for BTC stay modest, with nearly $20 million in shorts being liquidated. At press time, OI skyrocketed additional, up nearly $1 billion (from $11.04 to $12.03 billion).

Renowned analyst @52kskew emphasized the buying and selling conduct on Binance: “Majority chasing shorts aggressively from what I can see so far. Binance Open Interest: Binance perp OI starting to moon again with minimal price difference ~ big move brewing. OI up and insignificant change in perp delta (positions opening into price). Takers still aggressively selling into price, bulls want to see constant limit chasing on the bid here. $26.7K pivotal price for direction.”

Ali Martinez, one other analyst, pointed in direction of Bitcoin’s 3-day chart and famous a purchase sign by the TD Sequential yesterday. “A boost in $BTC buying pressure might drive prices to the channel’s mid or upper boundary – targeting $28,000 or $31,000. Still, watch the TD Risk Line at $24,500. It’s the key invalidation point.”

Buy signal — Buy sign by the TD Sequential | Source: X @ Ali_charts

From macro perspective, famend analyst Ted (@tedtalksmacro) indicated a correlation between USD liquidity and Bitcoin worth actions: “If you can track/forecast USD liquidity, you’ll have a solid idea of where price is headed.” He went on to spotlight a divergence between the rise in USD liquidity and the earlier stagnation of BTC, emphasizing the current shift which is perhaps pushed by returning liquidity.

Bitcoin vs liquidity | Source: X @tedtalksmacro

Monthly Close Will Be Crucial

As NewsBTC reported, September is traditionally one of many worst months of the 12 months for the Bitcoin worth. However, this 12 months may very well be totally different if BTC continues its development of the previous couple of days.

Rekt Capital highlighted the potential significance of the upcoming month-to-month candle shut for Bitcoin in a current tweet, stating: “The upcoming Monthly Candle Close will be pivotal.” According to the analyst, Bitcoin typically produces lengthy upward wicks when it transforms previous Monthly helps into new resistances.

In easy phrases, an upward wick on a candlestick chart signifies worth ranges the place Bitcoin traded throughout a interval however didn’t shut. A protracted wick suggests a robust rejection from these greater worth ranges. This may imply that whereas consumers tried to push the worth up in the course of the month, by the shut, sellers had introduced it again down, leaving an extended ‘wick’ on the candlestick.

Rekt Capital means that these wicks can lengthen as much as +8% past the candle physique. The analyst notes that if the month-to-month candle shut produces an upside wick of +7% past the ~$27,100 stage, it may imply the worth may transcend the weekly decrease excessive.

This may very well be a optimistic signal if the month-to-month shut stays above $27,100, indicating it as a help stage. However, if the worth closes the month beneath $27,100 after reaching greater ranges, it could affirm $27,100 as a brand new resistance, hinting that the current worth motion is perhaps only a short-term upward rally.