Bitcoin’s Bullish Momentum: Is the Bull Run Back on Track?

After a rough start to the week, Bitcoin’s price seems to be stabilizing and showing signs of bullish momentum. On Friday, March 14, Bitcoin made a steady climb, briefly crossing the $85,000 mark and closing the week on a strong note.

Interestingly, the rise in Bitcoin’s price is mirrored by an increase in its open interest (OI), which has been steadily climbing as well. This raises an important question — Is the Bitcoin bull run back on track?

What Does the Jump in Bitcoin Open Interest Mean?

In a recent post, a CryptoQuant analyst (using the name Maartunn) pointed out that Bitcoin’s open interest has been on the rise. Open interest refers to the total value of money invested in Bitcoin derivatives (like futures and options contracts) at any given time.

As of Friday, March 14, Bitcoin’s open interest reached $27.9 billion, marking a 13% increase from its recent low (about $3.3 billion). This is significant because an increase in open interest usually means that more investors are entering the market and opening new positions, which could be a sign of confidence in the future price of Bitcoin.

Historically, when open interest rises, it can be a bullish signal — it suggests that investors are betting on higher prices, or at least increased market activity. However, if open interest drops, it typically indicates that investors are leaving the market or being liquidated.

Could Bitcoin Be Heading for $95,000?

Looking ahead, Bitcoin’s price seems poised for an upward move. Tony Severino, a Chartered Market Technician, shared that he believes Bitcoin could reach $95,000 in the coming days, provided it manages to break past its 200-day moving average (MA). If Bitcoin can hold above this level, it may continue climbing to the 50-day moving average around the mid-$90,000 range.

Currently, Bitcoin is priced at around $84,500, showing an almost 5% increase in the past 24 hours. So, the momentum seems to be in favor of the bulls — but the real question is whether this momentum will hold.

What Does This All Mean?

In simple terms, Bitcoin’s recent rise in both price and open interest suggests that investor confidence is returning, and the market could be preparing for more volatility. If Bitcoin continues to gain momentum, it could push toward new highs, but there’s always a risk of sudden fluctuations, given the volatile nature of crypto markets.

As always, the next few days will be crucial to determining whether this bullish trend holds. With increased open interest and some strong technical signals, Bitcoin may be gearing up for another price rally. But, as history shows, the market can change quickly, and investors should keep an eye on how things develop.