Bitcoin (BTC) price paced to $35,000 for the first time in 2023, with the spot trading volume rising by 187% to $50 billion and the market cap increasing by 13% to $676 billion.
Although the rally started last week amid fake news regarding the approval of a BTC spot ETF proposal by BlackRock, investors, especially institutions have been racing to satisfy their risk appetite for Bitcoin.
According to market data by CoinGecko, Bitcoin price has in the last 24 hours increased by 13%, 21.5% in seven days, and 30.5% in the last month to trade at $34,520 on Tuesday.
The technical outlook is bullish as we will see later, with the uptrend not showing any signs of weakness. The validation of an ascending triangle pattern hints at a larger breakout to $45,711, but first, let’s dissect the forces behind the upswing to highs slightly above $35,000.
Institutions Rush To Buy Bitcoin As Open Interest Soars
Institutional investors are leaving no stone unturned in the race to book positions and capitalize on the impromptu Bitcoin price rally. Optimism around the approval of a spot BTC ETF in the US can be singled out as one of the major forces behind the breakout—first above $30,000 and now to $35,000.
According to CoinDesk, interest in Bitcoin continued during the Asian hours on Tuesday following the revelation of a BlackRock ETF on the Depository Trust & Clearing Corp. (DTCC) website.
Meanwhile, the Bitcoin futures open interest (OI) hit 100k BTC on the Chicago Mercantile Exchange (CME) for the first time in history implying that institutional investors had increased their appetite for the most prominent cryptocurrency.
CME BTC futures OI has breached 100k BTC for the first time ever.
While offshore perp OI shrank by 26,735 BTC yesterday, CME’s OI grew by 4,380 BTC. pic.twitter.com/kjKBRYCoSX
— Vetle Lunde (@VetleLunde) October 24, 2023
The market share of CME subsequently surged by 25% and could soon surpass that of Binance’s perpetual market, according to Vetle Lunde, a K33Research analyst.
Bitcoin Price Breakout To $45,000 Seems Imminent
Bitcoin has broken above an ascending triangle pattern with a 49% breakout targeting $45,711. Although bulls have nurtured the ongoing uptrend since the beginning of the year, resistance at $30,806 prevented the breakout.
Trading above the x-axis ($30,806) validated the triangle breakout bolstered by a massive increase in trading volume. Traders were expected to trigger their buy orders slightly above the x-axis for gains targeting $45,771.
The Relative Strength Index (RSI), which continues to trend north, with a strength of 61 reinforces the bullish outlook. Besides, Bitcoin price is holding above all the bull market indicators such as the 21-week Exponential Moving Average (EMA), the 100-week EMA, and the 200-week EMA.
For now, traders should be on the lookout for how BTC reacts to the immediate resistance at $35,000. Holding above this level may serve as confirmation for bulls to push the triangle breakout to $45,771.
On the downside, rolling back may give already sidelined investors an opportunity to jump onto the moon-bound bandwagon, with support expected to be provided by the selected moving averages at $28,200, $27,901, and $25,797, respectively.
Rekt Capital, a crypto analyst, trader, and investor, has encouraged his followers not to feel sidelined by the move in Bitcoin price because “when retracement presents itself in the coming months – it should be treated as an opportunity for re-accumulation.”
#BTC has broken out
However, when retracement presents itself in the coming months – it should be treated as an opportunity for re-accumulation
It can be easy to think you’ve missed out on the entire Bull Market and that $BTC will never pullback
But a market cycle lasts a long… https://t.co/e6CNQ2D36b
— Rekt Capital (@rektcapital) October 24, 2023
FOMO could see most investors believe that they have missed the bull run but as Rekt Capital puts it “A market cycle lasts a long time, there will always be breakout rallies and there will always be pullbacks. Another opportunity will always present itself.”
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.