Source: Wit Olszweski – Shutterstock
- In its fourth attempt to break the $10,000 mark in May, Bitcoin failed once again.
- The Bitcoin Open Interest of institutional investors is reaching an all-time high, signaling bullish momentum for BTC.
- Altcoins such as Ethereum, Litecoin or XRP are currently following the trend of Bitcoin.
The Bitcoin price has been trying to break through the $10,000 mark in the last few hours, but has failed in its first attempt. At the time of writing, Bitcoin has gained 3.44% in the last 24 hours to a price of $9,874.42. The market capitalization of Bitcoin has increased from $174 billion to $180 billion.
Experienced Bitcoin trader Josh Rager describes that Bitcoin closed above the important $9,550 mark on the weekly chart, thus laying the foundation for another bullish run in the coming days. Rager is waiting for the Federal Reserve (America’s central bank) to pump new money into the market, which will not only boost the economy, but also Bitcoin and the crypto market.
$BTC – Nice weekly close above $9550s
Looking forward to watching the FED pumping all markets this week pic.twitter.com/AzRm78Rzyy
— Josh Rager 📈 (@Josh_Rager) May 18, 2020
Analyst Teddy agrees with Rager and shared a chart with his community, which shows that Bitcoin has recorded a strong week-end close and thus set the course for a further rise. However, he points out to his followers that the volatility is still high, so traders should be alert.
— Teddy (@TeddyCleps) May 17, 2020
Senior technical analyst Pentoshi of the research company BlockFyre writes that Bitcoin must rise above the $10,500 mark to reach a new all-time high. In his opinion, Bitcoin has overcome many important resistances from this year’s all-time low of $3,700 to date. If this important mark can be broken, the way is clear for a new all-time high. Trader il Capo Of Crypto shares this opinion.
Are you ready? If $BTC gets over this. There isn’t much standing in the way of new ath’s. They’d be on the horizon. Way less resistance than anything #bitcoin overcame going from 3.7k to here. Would be a macro higher high confirmed. Don’t underestimate the implications! https://t.co/z5nXThuooq
— Pentoshi (@Pentosh1) May 17, 2020
However, resistance along the $10,000 mark is currently proving to be extremely strong, as sell orders for 4,200 Bitcoin on Bitfinex are in the price range of $9,900 to $10,600. However, data from the Skew.com analysis platform shows that during the current upswing, only $5 million was liquidated on derivatives exchanges such as BitMEX.
The volume is thus significantly lower than in the past two weeks, when Bitcoin also rose close to the $10,000 mark. This could indicate that investors expect Bitcoin prices to continue to rise and have therefore not placed sell orders. When Bitcoin rose to almost $10,000 on May 8th, a correction to $8,700 followed two days later.
Meanwhile, the Altcoin market is following the current trend of Bitcoin and is experiencing significant price increases. Ethereum’s price has risen by 6.14% within the last 24 hours to a price of $214.71, breaking the psychologically important $200 mark. XRP is trending sideways (+1.01%) to a price of $0.20.
Open interest reaches all-time high – investors still bullish
New data from the Chicago Mercatile Exchange (CME) also shows that the volume of Bitcoin options rose by more than 1,000 % in May and investors are preparing to buy Bitcoin. Potential buyers can buy Bitcoin at a pre-agreed price through a call option. The investor pays an upfront premium and can thus secure his Bitcoin position.
This data also indicates that investors are preparing for a further increase in Bitcoin’s price. First, however, the strong resistance along the $10,000 mark must be broken.
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