1. Bitcoin price surged to a three-week high after Sunday’s breakout above $17k and could potentially push towards last December’s high of around $18,300.
2. The tension in the Bitcoin and cryptocurrency market remains high in the coming weeks with DCG insolvency fears.
3. Bitcoin open futures market is used as a liquidity and volatility indicator on the spot prices.
The Bitcoin (BTC) market is experiencing a surge of optimism recently, with the cryptocurrency’s price breaking out above $17,000 over the weekend and hitting a three-week high. This has many analysts and traders expecting a continued bullish momentum that could push the price of Bitcoin towards its December 2020 high of around $18,300.
However, the current situation in the Bitcoin and cryptocurrency market is still tense, with the Digital Currency Group (DCG) facing insolvency fears. This could potentially disrupt the positive momentum of the crypto market, and the coming weeks will be crucial in determining the overall direction of Bitcoin prices.
In addition, the U.S. Federal Reserve Chair Jerome Powell is expected to speak on key monetary policies tomorrow, and the Consumer Price Index (CPI) data is expected later this week. These events could potentially have an effect on the price of Bitcoin, and traders and analysts will be closely monitoring these developments.
On the technical side, some analysts are pointing to the Bitcoin open futures market as a crucial indicator for the spot price. According to Glassnode data, there is currently more calls than put – buying and selling of underlying assets respectively – on Bitcoin trades in the first quarter of 2023. This could potentially signal the end of the 2022 bear market and lead to a 20 percent outburst in the price of Bitcoin.
Overall, the Bitcoin market is currently at a crucial crossroads that could lead to a major breakout. The coming weeks will be crucial in determining the future direction of Bitcoin prices and the overall crypto market. Analysts and traders will be closely monitoring the events in the coming days and weeks, as they could potentially have a major effect on the price of Bitcoin.