Bitcoin [BTC] broke bullish on 28th August as it rejected another attempt for a break below $9000. The price has been in the green since then, with Bitcoin holding its gains above $10,500. Analysts suggest that we could see a massive move on either side soon.
According to another crypto-trader, B.Biddles, the open interest in Bitcoin is rising. It corresponds to the number of active contracts (Short or long) on Bitcoin. As the OI is rising, the pressure for a big move is also rising. He tweeted,
$btc – micro up-trend since ~Aug 31.
OI rising as we consolidate. That usually confirms trend. But I don’t feel certain enough to enter a trade. Next move will be violent as OI is rising in a tight range, lots of potential liquidations on either side.
Sawcruhteez also suggested that, “We could get a big move in the blink of an eye.” However, Tone Vays expressed that possibility that we could see neutral move for another two months, “who knows, he says.”
On the four hour chart, Bitcoin is holding on to the 200-Day Moving Average. Moreover, the price above 100 and 50-Day Moving Average is an bullish indicator. Sawcruhteez also suggested that we could soon see a ‘golden cross’ between the 50 and 100-Day Moving Average if Bitcoin continues to trade above it.
BTC/USD 4-Hour Chart on Bitstamp (TradingView)
On the daily chart, its still trading below the wedge pattern and psychological resistance at $11,000.
Moreover, Tone Vays indicated that we could re-test the $10000 support levels.