Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
- Bitcoin has hit a new year-high of $31.7k.
- Open Interest rose by $1B to signal bullish conviction from speculators.
Bitcoin [BTC] made its most emphatic statement of the year, rising to a year-high of $31.7k. This pushed the king coin past the $30.9k resistance level. Previously, BTC was stuck in a tight price range for over three weeks after its solid bullish performance in late June.
Is your portfolio green? Check out the Bitcoin Profit Calculator
This ascent above the $30.9k resistance could usher another strong bullish leg up for Bitcoin. As always, altcoins registered good gains with the global crypto market cap rising to $1.25 trillion, a 5.77% increase over 24 hours.
Bulls claim the upper hand after intense price war
Source: BTC/USDT on Trading View
The 12-hour chart revealed the intense price war between bulls and bears which lasted over a three-week period. Bitcoin’s extensive gains in June pushed it past the $30k price level. However, the bears put up stiff resistance at the $31k price zone.
This dropped BTC to a tight range with prices oscillating between $29.4k and $30.9k. After the latest notable drop to $29.8k on 6 July, Bitcoin began to make a slow advance for the $31k resistance again.
Despite two rejections on 10 July and 12 July, bulls finally found the buying pressure to close above $31k over the past 24 hours. With BTC trading at $31.2k at press time, new buying opportunities could be on the horizon.
The RSI showed that the bullish momentum was still going strong, as it remained above the median-50 mark with a reading of 61. The MACD also posted a bullish crossover with slight green bars above the zero mark.
New buyers can wait for a retest of the $30.9k-$30.5k area, with a stop-loss below the $30.2k mark. A break below the $30.2k mark will invalidate the buy idea. The target for bulls will be a year-high $31.7k with extended levels at $32.2k.
Futures market reacts positively to new price gains
Source: Coinalyze
The rally above $31k enacted a positive reaction from market speculators, per Coinalyze. The Open Interest rose by $1 billion over the past day, showing bullish conviction from speculators.
Read Bitcoin’s [BTC] Price Prediction 2023-24
The positive funding rate also showed that more buyers would be eager to bid on Bitcoin if it maintains its strong bullish momentum in lower and higher timeframes.
Together, it highlights the steady buying pressure behind the king of crypto, even as it looks to consolidate above the $31k price zone.
