- Bitcoin showed signs of a new uptrend amid a potential market cap surge.
- Traders remained long and liquidity was plentiful.
Crypto analyst Rekt Capital stated that the total crypto market cap could increase by another 10% to 23%. And Bitcoin [BTC] could be the biggest beneficiary of the walk. According to the analyst, the $1.165 trillion point, which once acted as resistance, was now in support mode for the market.
Indeed, total crypto market cap has moved back deeper to successfully retest the bottom of the green area as support ($972 billion)
Old resistance (red) has turned into new support (green)
Now Crypto Market Cap is trying to break the $1.165 trillion black resistance
Break… pic.twitter.com/Ju13Ffkkyk
— Rekt Capital (@rektcapital) July 4, 2023
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Previously, Rekt had mentioned that the $930 billion market cap retest would result in a breakout of more than $1 trillion in May. So now the old resistance has turned into support. Furthermore BTC, that was the main one dominant assets in the market can also rise.
Opportunity still opens
From the four-hour chart, it may seem that the analyst had a solid point thanks to the Know Sure Thing Indicator (KST). As an indicator used to determine potential entry and exit points, the KST had passed above the zero line at the time of writing.
Usually this means a positive momentum shift. And it could be a buy signal as BTC price failed to reach higher highs and KST lower highs.
A look at the Bollinger Bands (BB) revealed that BTC’s volatility had remained extreme. However, this did not translate into unexpected price fluctuations.
Also, the price of BTC at USD 31,040 failed to touch the lower or upper band. Therefore, this suggested that the coin was neither oversold nor overbought.
![Bitcoin [BTC] price action](https://statics.ambcrypto.com/wp-content/uploads/2023/07/BTCUSD_2023-07-04_13-53-04.png)
Source: TradingView
In addition, it emerged that much of the market believes the BTC rally above $31,000 was almost there. This was because the funding ratio remained at 0.01%.
Funding percentage and OI match
Typically, the funding rate represents the difference between the market price for perpetual futures and the spot price. Negative readings mean that short traders pay a financing fee on the long side.
But since Bitcoin’s funding rate was positive, it suggested a bullish bias and long traders paid shorts to hold their position. also the ask because BTC could stay at a high later on because of the Open Interest (OI).
Read From Bitcoin [BTC] Price prediction 2023-2024
The OI is the total number of outstanding futures contracts in the market, deducted from the closed positions. At the time of writing, the OI was 7.5 billion, the highest value since the start of the new year. This situation means that new money entered the market.
And if liquidity increases, Bitcoin’s market cap could rise as the price tracks in a similar direction.