After weeks of price fluctuations, Bitcoin buyers show new strength. In the past hours, important signals on the chain have become positive because Bitcoin found support around $ 110k. This has pushed the purchase activity higher, which increases the chance of new weekly highlights. In addition, the increasing interest of institutional investors adds even more stability to the support levels of Bitcoin.
Bitcoin’s open interest becomes positive
Bitcoin’s purchase demand is increasing because recent DIP-BUYING has built strong support levels. This has made different indicators on the chains positive. Data from Coinglass shows that Bitcoin saw more than $ 280 million in liquidations in the last 24 hours, with buyers being good for around $ 264 million of those positions that were closed.
According to data on the Cryptoquant chain, there are still signs that Bitcoin bulls can remain hopeful about a rebound. The platform noted that large -scale sales or distribution has not yet completely taken over the market.
After reaching a record high of $ 124k, Bitcoin is now in a withdrawal phase that can take a little longer. Interesting is that although large whales stop, smaller holders with a maximum of 10 BTC still collect steadily.
Some traders see little reason to expect the Bitcoin bull market to return completely. Those with a careful view of future price movements have only become more secure after BTC/USD has fallen to the lowest level since the beginning of July.
Also read: Why Bitcoin, ETH and XRP price are no longer today
The open interest of Bitcoin has risen in recent days. According to Coinglass, it rose by 0.97% to $ 85.5 billion. This increase indicates a higher trading activity and growing volatility, which can open the door for Bitcoin to break above nearby resistance levels.
Last week, Fed chairman Jerome Powell unexpectedly shifted from his earlier havel -like tone, which stimulated the hope for a potential speed reduction. Risk activa such as Bitcoin jumped immediately, but since then the excitement has faded, while investors are waiting for more inflation data prior to the decision of the mid -September.
What is the next step for Bitcoin price?
Bitcoin recently fell under the EMA trend lines, because buyers did not take the demand for resistance channels. Bitcoin, however, has built strong support around the $ 110k level. From writing, BTC price acts at $ 112,434, which has fallen more than 1.65% in the last 24 hours.
Buyers are expected to defend the zone between $ 110,000 and $ 112,000. If the price of this support bounces, BTC/USDT could easily rise to the 20-day EMA ($ 113,500) on the 4-hour graph. A daily close to this level would suggest that Bitcoin can act sideways between $ 110,000 and $ 118,000 for a while.
On the other hand, if Bitcoin fails to break above the 20-day EMA and instead falls under $ 110k, it would show that sellers are in control. In that case the price could quickly fall to $ 105,000 and possibly even to the most important psychological level of $ 100,000.
The RSI is currently trying to restore above the center line, because it acts at level 42. If buyers are confronted with further resistance, we may see a steep decline on the graph.