Bitcoin Price Forecast for Next Week: BTC Eyes $30K Volatility as Open Interest Nears 1-Year High
As the sun sets on another volatile week for Bitcoin, traders are preparing for yet another ride in the upcoming days. As the open interest (OI) metric has touched its 1-year high, Bitcoin (BTC) is on the edge of seeing significant price volatility, and it’s looking towards the $30K mark next week.
Traders Are Unhappy With SEC
Bitcoin traders are currently dissatisfied with recent price movements, especially given the price’s failure to cross the $30,00 threshold in the past few weeks. This disappointment deepens as many applications for spot Bitcoin exchange-traded funds (ETFs) are experiencing delays or remain under regulatory scrutiny.
Interestingly, there’s been a marked increase in open interest (OI) for Bitcoin futures contracts, suggesting a heightened demand from institutional investors. According to CryptoQuant’s data, the OI metric is currently trading at $10 billion after touching nearly 1-year high of $10.4 billion recently. This level was last seen in 2022’s November when BTC price broke above the $20K mark.
However, the price couldn’t maintain its upward momentum because of FTX’s downturn that time. Now the same level has been reached again and traders are optimistic about a potential bullish comeback next week.
Open interest refers to the total number of outstanding derivative contracts, such as futures and options, that haven’t been settled. A surge in this figure suggests an increased activity in the market and can be a precursor to potential price movements, especially when combined with volume.
The fact that Bitcoin’s open interest has hit a 1-year high is a strong indicator that traders are increasingly hedging their positions or speculating on the price movement. It’s a sign that the market is gearing up for a significant move toward its psychological level of $30K.
What’s Next For BTC Price?
Bitcoin attempted to surge past the $30K level this week but failed to gain buying momentum near higher levels as bears are taking advantage of upticks to sell. As of writing, BTC price trades at $29,424, surging over 0.1% in the last 24 hours.
The price variance of the BTC price has become narrower, consolidating between $29,300 and $29,500. With both moving averages leveling off and the relative strength index (RSI) hovering around the midpoint, it hints that this sideways movement might continue for a while.
Predicting the breakout’s direction is challenging when prices remain within such a tight range. Nevertheless, traders should anticipate a clear move next week.
A dip below $29,100 could push the price towards the range bound zone between $28,300 and $28,700. On the flip side, if the price breaks and holds above $30,200, it might set the stage for a rise to $31,500. Clearing this barrier could pave the way for an ascent to $32K.
