Summary:
Bitcoin’s aggregated open interest has hit a new high of $14BBitcoin has just set a local high of $40,960 – Binance rateThe King of Crypto has printed what looks like an ascending triangleA resolution of the triangle to the upside could result in new highs for Bitcoin in FebruaryHowever, selling by miners in preparation for the Chinese New Year could slow down BTC’s progression higher
The total, or global, Bitcoin futures open interest has just reached a new all-time high of $14 Billion. This milestone was highlighted by the time at Unfolded via the following statement and accompanying chart courtesy of Skew.com.
Global #bitcoin futures OI hits $14b for the first time.
Bitcoin Posts a Local High of $40,960 – Binance Rate
Bitcoin Posts a Local High of $40,960 – Binance RateThe record-breaking open interest on global Bitcoin futures contracts comes at a time when BTC has just set a local peak value of $40,960 – Binance rate. By reaching this price level, Bitcoin has formed what looks like an ascending triangle as illustrated in the following daily BTC/USDT chart.
From the daily Bitcoin chart above, the following can also be observed.
Bitcoin’s ascending triangle has a ceiling around the $39k – $42k price zoneThis zone will be pivotal in Bitcoin posting a new all-time high before the end of FebruaryThe daily MACD is in bullish territory and is yet to exhibit weaknessBoth the daily MFI and RSI are yet to enter in overbought territory at 74 and 68 respectivelyChances are, that Bitcoin attempts to break through the upper boundary of the ascending triangle in the days to follow
Possible Effects of the Chinese New Year on Bitcoin
However, with the Chinese new year about to begin, miners will most likely want to sell their bags close to the $40k level thus postponing Bitcoin’s progression to higher levels. This year, the Chinese New Year begins on the 12th of February and is a 16-day event market by traveling for leisure or to visit family and friends, alongside other festivities. Therefore, it is only natural for miners to want to sell their BTC bags in preparation for the events.
