Bitcoin (BTC) hit new month-to-date highs on Sept. 18 as a strong weekly close cemented a bullish start to Wall Street trading.
Trader cautions on surging Bitcoin open interest
With the Wall Street open around the corner, market participants eyed “momentum” returning among Bitcoin bulls.
“Bitcoin price breaks the barrier at $26,800 and attacks the highs at $27,200,” Michaël van de Poppe, founder and CEO of trading firm Eight, summarized.
“Trend looks like to be upwards from here, as altcoins are also waking up. Still the best period to buy your assets.”
Van de Poppe uploaded his latest analytics chart to X (formerly Twitter), showing the area of resistance now necessary for a reclaim.
Monitoring resource Material Indicators meanwhile revealed daily buy signals on its proprietary trading instruments.
“Bulls seem to have mustered some momentum since the D candle open,” part of accompanying commentary read.
UPDATE: #BTC Bulls seem to have mustered some momentum since the D candle open. Both Trend Precognition algos are flashing new ⬆️ signals in the Daily TF. A close below $26,414 would invalidate. pic.twitter.com/KSAp6e0tjt
— Material Indicators (@MI_Algos) September 18, 2023
Elsewhere, a cautious Daan Crypto Trades flagged ballooning open interest, which returned to levels last seen after the brief BTC price gains that followed asset manager Grayscale’s legal victory against United States regulators.
#Bitcoin Open Interest has been ramping up like crazy these past few hours.
Up +$850M in hours.
This can be an issue if spot bid disappears which could cause for a full retrace similar to before.
This would then be due to underwater positions that entered near the top. If… pic.twitter.com/PmQOvVt7Gw
— Daan Crypto Trades (@DaanCrypto) September 18, 2023
Trader and analyst Rekt Capital meanwhile demanded that bulls win back higher levels and hold them into the September monthly close.
“Soon going to revisit ~$27100 (black),” he forecast on the day alongside a chart.
“This level acted as support earlier this year and could turn into new resistance this month, unless $BTC reclaims it with a Monthly Close above black.”