Bitcoin price is fighting to break out of conslidation at it trades at $34,313, after rising 0.8% over the last 24 hours. This comes as Bitcoin Futures and Options reach an all-time high, reinforcing the effects spot Bitcoin ETF approval optimism has on the market.
Data from various sources has revealed that Bitcoin exchange-traded funds (ETFs) and other institutional investment options have reached record levels of weekly inflows. Open interest in Bitcoin futures surpassed $15.83 billion, the highest level since early June 2022.
In addition, BTC options holdings currently sit at around $15 billion, with a historical peak level reaching $17.73 billion on October 27. Since October, open interest in Bitcoin futures contracts has increased by 33.5%, pointing to the growing interest in crypto trading. As the market continues to evolve, it remains to be seen whether Bitcoin will maintain its position as a prominent player in the world of finance.
The latest developments in the trading of Bitcoin derivatives indicate that the crypto industry is evolving rapidly, with more avenues for traditional investors to participate in the digital asset revolution.
As the United States moves closer to potentially approving a spot Bitcoin ETF, the enthusiasm and confidence in the future of cryptocurrencies are only expected to grow and with it BTC’s price.
Bitcoin Coils Up Before a Run-Up to $36K
The price of the big crypto is being pressed from both sides by the resistance and support lines of a pennant. This has been taking place over the last seven days. This suggested that BTC was consolidating as overhead pressure and buying pressure appeared to balance out.
At press time, Bitcoin is trapped between the upper boundary of the governing chart pattern and the $34,000 psychological level, and a breakout was likely to take place in either direction.
Bitcoin may break out in favor of the upside if it produced a daily candlestick close above the $34,720 level where the resistance line of the pennant sat. Such a move could see the price of the pioneer cryptocurrency rise first toward the $35,000 psychological level.
A climb higher would see the price move toward the $35,500 barrier before reaching the optimistic target of the governing chart pattern around $36,100. Such a move would represent a 5% increase from the current price.
BTC/USD Daily Chart
Bitcoin’s optimistic outlook was supported by the upward-facing moving averages. These MAs provided robust support around the demand area stretching from $27,600 to $29,400. This provided a breathing zone where buyers could retreat to and regroup before making another attempt at recovery.
Also validating the bullish thesis for Bitcoin was the Directional Movement Index (DMI). The positive directional line (+D) at 38 was way above the negative directional line (-D) at 5. The position of the average directional line (ADX) at 54 suggested that BTC’s uptrend was very strong.
However, for a breakout to occur downward, Bitcoin bears would need to breach the immediate support at $34,000, before exploring areas around $33,800. Meanwhile, any attempt to pull the BTC price to revist the pesimistic target of the prevailing chart pattern at $32,300 (a 5% decline) may be hindered by resistance from the $33000 psychological level.
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Source: https://www.analyticsinsight.net/bitcoin-looks-to-exit-the-no-trading-zone-as-btc-futures-and-options-reach-a-record-high/