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Bitcoin has reached a crucial price level and secured an enormous win with a $62 billion surge in open interest that opens the way for further growth, as it is fuel for the asset’s future growth.
The price chart of Bitcoin is highlighting a substantial breakthrough from the descending channel, which triggered a move toward $100,000. The 50 and 200 day moving averages are also looking bullish, aligning perfectly, suggesting a positive market continuation trend.
The open interest chart, though, looks much more bullish. The record-breaking surge in Bitcoin open interest is clearly showing the market’s desire to recover. The significant capital inflow should improve the sentiment among traders, and the spike in price can attract even more retail and institutional investors.
Influx of capital, however, can sometimes become a source of surging risks, as the market’s surge in volatility can trigger liquidations, pushing some investors away from the market and making price swings more abrupt. Historically, high open interest was a signal of an upcoming short-term correction, even though the overall trend is bullish.
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With the surge in momentum, the possibility of surpassing $100,000 is more than real. Key resistance levels were already broken, and Bitcoin is trading somewhere in the middle ground, which can also be considered a test for the market. A successful breach of these levels can easily spark a parabolic rally and even cause a strong recovery.
Bitcoin’s macro trend also supports the current dynamic with an inflow of institutional investors, a growing economy and active inflation hedging. The adoption of Bitcoin is also increasing, providing an additional source of fundamental growth.
The path to $100,000 is long and complicated, even for the biggest asset on the market. The open interest surge confirms that the market is ready for that move, but history shows that psychological milestones quite often become points of setback and correction, which is why it is crucial to stay alert and anticipate any kind of volatility ahead.
Source: https://u.today/62-billion-hit-bitcoin-btc-secures-mind-blowing-record