Disclaimer: The information presented does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
- Bitcoin has reached a new yearly high of $31.7k.
- Open interest rose $1 billion to signal bullish belief from speculators.
Bitcoin [BTC] made its most emphatic statement of the year, rising to a yearly high of $31.7k. This pushed the king coin past the $30.9k resistance level. Previously, BTC was stuck in a tight price range for more than three weeks after its solid bullish performance at the end of June.
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This rise above the $30.9k resistance could herald another strong bullish leg for Bitcoin. As always, altcoins posted good gains, with the global crypto market cap rising to $1.25 trillion, up 5.77% in 24 hours.
Bulls claim the upper hand after intense price war
Source: BTC/USDT on trade view
The 12-hour chart revealed the intense price war between bulls and bears that lasted three weeks. Bitcoin’s massive gains in June pushed it past the $30,000 price level. However, the bears offered solid resistance in the $31,000 price zone.
This caused BTC to drop into a tight range with prices fluctuating between $29.4k and $30.9k. After the last notable drop to $29.8k on July 6, Bitcoin started moving slowly ahead of the $31k resistance again.
Despite two rejections on July 10 and July 12, bulls finally found the buying pressure to close above $31k in the past 24 hours. With BTC trading at $31.2k at the time of writing, new buying opportunities could be on the horizon.
The RSI showed that bullish momentum was still strong as it remained above the median -50 with a reading of 61. The MACD also posted a bullish crossover with slight green bars above the zero mark.
New buyers can wait for a retest of the $30.9k – $30.5k area, with a stop-loss below $30.2k. A break below $30.2k voids the buy idea. The target for bulls is $31.7k for the full year with expanded levels of $32.2k.
Futures market reacts positively to new price gains
Source: Coinalyse
The rally above $31k triggered a positive response from market speculators, per Coin analysis. The Open Interest has increased by $1 billion in the past day, indicating an optimistic belief among speculators.
Read Bitcoin [BTC] Price Forecast 2023-24
The positive funding rate also showed that more buyers would be eager to bid for Bitcoin if it maintained its strong bullish momentum in increasingly shorter time frames.
Together, it highlights the steady buying pressure behind the king of crypto, even as it appears to be consolidating above the $31,000 price zone.
