Outside Source
TL;DR
- Bitcoin surged past $63,000 after a Fed rate cut, with experts predicting a potential bull market soon.
- Rising open interest suggests possible volatility ahead, with both bullish and bearish scenarios.
A Major Rally in the Following Days?
Despite not starting September on the right foot, Bitcoin (BTC) experienced an uptrend following the US Federal Reserve’s decision to cut interest rates by 0.5%. The price of the primary cryptocurrency is was hovering at around $59,000 on September 18 (when the central bank had its FOMC meeting), while currently it trades at over $63,000.
Multiple industry participants think BTC is gearing up for a much more impressive surge in the near future. One example is Crypto Rover (an X user with over 800,000 followers on the social media platform). He claimed “the Bitcoin bull market will start in the next 15 days.”
The analyst outlined the latest halving as a catalyst, claiming a massive resurgence might be observed 170 days after the event. The halving, which cuts in half the rewards for miners for validating transactions on the network, took place in April this year, or 155 days ago.
KALEO and Mikybull Crypto are shared a similar thesis. The former thinks “we haven’t even seen the real bull market for this cycle yet.”
Mikybull Crypto noted the formation of an “inverse head and shoulders” pattern on BTC’s price chart, suggesting this could be followed by a rally to a new all-time high of $83,000.
Volatility Ahead?
An important factor signaling that BTC’s price may witness severe ups or downs in the near future is the open interest. The metric, which refers to the total number of open contracts, such as futures or options, that have not been settled yet, has been on the rise lately and now stands at over $18 billion.
Increased open interest combined with the rallying price of BTC generally indicates a bullish trend as more traders supposedly enter the ecosystem with long positions.
However, if the metric heads north while the asset’s valuation is declining, it might suggest that market participants jump on the bandwagon with short positions, expecting a further plunge.
This article first appeared at CryptoPotato
