By
Steve Muchoki
May 6th, 2024
Bitcoin price has broken crucial support of $8700 levels by losing over 1% today. Analysts say that Bitcoin still gathers a lot of open interest in the market.
After consolidating its position above $8700 levels for the past few days, the Bitcoin price crashed another 1% today. At press time, Bitcoin is trading at $8640 with a market cap of $155 billion.
The latest price drop comes as Bitcoin has been a victim of sideways trading ever since it failed to sustain above $9000. With this move, Bitcoin has slipped below its major support of $8700. This move has clearly raised the exposure of further slipping to its next support of $8550.
Over the last month, Bitcoin’s performance has remained quite volatile. In the last week of October 2019, the Bitcoin price showed a huge momentum jumping almost 30%. In the price spike, Bitcoin went all the way from $7500 to $9500 levels. Bitcoin started this month on a good note. However, it has lost almost 15% just within the first fifteen days.
Bitcoin Sees Rise in Open Interest
The bears have managed to break BTC’s crucial support fo $8700 levels. While investors are closely watching is behavior for the next support levels, BTC is getting huge open interest.
This open interest suggests the underlying bullishness and can trigger the next bull run according to some analysts. Crypto expert and analyst Mr. Anderson expects a big move ahead for the cryptocurrency. He said:
“$BTC Open Interest: Don’t fall asleep and Don’t blink! Open Interest tells me that someone will light a match to some Rocket Fuel soon. Liquidations are coming soon”.
Another popular crypto analyst Cantering Clark that the bulls have been aggressively buying at each Bitcoin price drop. He adds that this shows wider support for Bitcoin than expected.
“1/1- I get the impression that much of this open interest increase is attributed to aggressive bulls, it would seem as though they are buying every dip. Premium supports that thesis. If that be the case I doubt our local support is more than butter,” added Clark.
It remains to be seen as to who among the two – bears or bulls – dominate in the coming times.
It is not just Bitcoin but the overall crypto market which is on downtrend today. Almost all of the top ten cryptocurrencies are facing downward pressure. Once cryptocurrency which has managed to surprise us all is Tezos.
Tezos continues with its upward journey posting 11% gains today. At press time, Tezos is trading at $1.24. Over the last month, Tezos price has surged by more than 50%.