- Bitcoin has been doing well this year but is suffering around the $30,000 zone
- While investors may be losing faith, two special indicators show that it isn’t over for $BTC yet.
- for the first time ever, the amount of Open Interest in $BTC Options has surpassed Futures contracts
- March’s bullishness on Bitcoin has caused a surge in the number of addresses buying and keeping BTC.
Bitcoin’s performance has been relatively interesting in 2023.
While the last year and a half have been about Bitcoin’s slow but steady decline from $69,000 to levels below $20,000, the cryptocurrency appears to now be picking up steam and has even rallied by as much as 70% to the upside since January 2023.
BTC, however, now appears to be struggling at the crucial psychological $30,000 resistance.
Because of the cryptocurrency’s inability to break through this resistance level, investors may be losing faith in the flagship’s ability to rally, and are starting to book profits.
But is Bitcoin’s bullishness over yet? Some key indicators don’t think so.
Bitcoin Open Interest
Glassnode, according to a tweet published during the weekend, has shown that for the first time ever, the amount of Open Interest in $BTC Options contracts (which sits at $10.3B) has surpassed that held in Futures contracts (currently around $10.0B).
For the first time, the amount of Open Interest in #Bitcoin Options contracts ($10.3B) has surpassed that held in Futures contracts ($10.0B).
Futures OI has been relatively flat in 2023.
This results from significant call option buys, as investors start to speculate on higher… pic.twitter.com/JtKM0uQwZP
— glassnode (@glassnode) April 8, 2023
But what is Open Interest?
Open interest, in simple terms, is defined as the number of open positions (including both long and short positions) on a derivative exchange’s BTC/USD trading pairs.
Open interest helps traders gain a better understanding of the market’s strength or weakness, bullishness or bearishness.
In the tweet, Glassnode pointed out that Futures Open Interest has been relatively flat in 2023. The blockchain analytics platform noted that this is the outcome of substantial call (or buy) options made by investors who have begun speculating that BTC may rise very soon.
This indicates that despite BTC struggling to around $30,000, the sentiment on the cryptocurrency is still relatively healthy.
Bitcoin Is Being Massively Accumulated
In a later publication by Glassnode, the data analytics firm also noted that the recent surge in Bitcoin’s price action through March has had some interesting results.
The recent surge in price action has propelled the number of Non-Zero Addresses to an ATH of ~45.5M, with only 96 / 5206 data points recording a larger 14d change in absolute terms.
This suggests the degree of on-chain activity is currently improving.
— glassnode (@glassnode) April 7, 2023
Glassnode noted that these BTC rallies have propelled the number of Non-Zero Addresses to an all-time high of approximately 45.5 million addresses, with only 96 out of 5206 data points recording a larger 14-day change in absolute terms.
Santiment, another blockchain data analytics platform has also noted that the number of addresses buying and keeping Bitcoin has surged recently.
“There is a rising rate of Bitcoin hodlers,” Santiment said, via a tweet. the crypto analytics platform noted that traders and investors now seem to be more comfortable with leaving their holdings unmoved for the long term.
💰 There is a rising rate of #Bitcoin #hodlers as traders seem to have become increasingly content in keeping their bags unmoved for the long-term. We saw a similar trend from January, 2021 through April, 2021 when $BTC rose above $64k for the first time. https://t.co/xrwNhcqVLo pic.twitter.com/wYFBsx6Css
— Santiment (@santimentfeed) April 9, 2023
Santiment noted that we saw a similar trend from January 2021 through April 2021 when $BTC rose above $64,000 for the first time.
Bitcoin In The Charts
According to CoinMarketCap, the flagship cryptocurrency is slightly bullish over the last week and the last 24 hours.
Bitcoin has risen by only 0.13% over the last week, by 1.4% over the last day and trades at $28,200 at the time of writing.
One of the first things that become evident after looking at BTC’s charts, is that the cryptocurrency is having a hard time breaking through $30,000.
Chart showing Bitcoin around $30,000
On the weekly charts, the last three candlesticks have been a series of Dojis, indicating that the cryptocurrency has been in this stage of indecision for almost a month now.
However, according to TradingView’s technical overview of BTC, the cryptocurrency still has pretty good chances.
According to the chart above, the cryptocurrency has a fairly strong sell verdict as far as the oscillators go (left). However, this verdict is offset by an even stronger buy verdict on the Moving averages (right).
Taking all of this into account, BTC in summary, sits at a fairly strong buy signal, meaning that it still has a fairly good chance of breaking through $30,000 and hitting $35,000
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.