Bitcoin has once again risen above $31,000 amid a sudden upswing in open interest.
Open interest, a measure of outstanding futures contracts that haven't yet been settled, jumped more than $300 million in just two hours. This suggests a significant increase in trading activity and speculative interest in the cryptocurrency.
Analysts are pointing to a more violent price swing due to market suppression. The notion is that the longer and tighter a price is suppressed, the more dramatic the reaction when it eventually breaks free. This view aligns with the market activity seen today, which appears to be a bullish rebound after Bitcoin's price had been under pressure.According to Glassnode co-founder Yann Allemann, Bitcoin's ascent above the $30,000 mark is a significant milestone, and the cryptocurrency now faces key resistance at the $30,500 level, according to market observer Negentropic. There is a rising buying pressure and the MACD (moving average convergence divergence), a trend-following momentum indicator, crossing above the "0" level suggests the momentum is shifting towards the bulls.
If Bitcoin can clear the hurdles of $32,500 and then $34,000, it could indicate a stronger bullish trend in the making.
In other developments, Dan Morehead, CEO of Pantera Capital, pointed out that Bitcoin's correlation with the S&P 500 has returned to zero, meaning Bitcoin is moving independently of the broader stock market.
This decoupling could make Bitcoin an appealing hedge against potential volatility in these traditional markets.