Bitcoin was up on Friday, trading above $115,000 after gaining significantly over the previous day.
According to Glassnode, several technical and on-chain indicators suggest that the Bitcoin market is “advancing on firmer footing” toward higher levels.
Weak spot demand and declining ETF inflows have hampered Bitcoin’s ability to achieve a long-term recovery.
In its most recent Week Onchain report, Glassnode stated that “attention now shifts to derivatives markets, which often set the tone when spot flows weaken.’
Options open interest (OI) increased 26%, rising from $43 billion in September to $54.6 billion, an all-time high.
The rise in Bitcoin’s price may be driven by growing investor interest in the derivatives market. Keep in mind that Bitcoin reached new all-time highs above $124,500 while options OI hit its previous record in mid-August. There are several reasons for Bitcoin’s popularity.
Net flows into Bitcoin spot ETFs have been positive since early September. Institutional demand is driven by daily net inflows, which serve as a liquidity floor and help absorb sales. As analysts expected, the macroeconomic environment also impacts Bitcoin’s value.
US inflation increased by 2.9 percent year over year in August, which has led the Federal Reserve to be less likely to tighten monetary policy further, encouraging riskier assets like cryptocurrencies.
Historically, strong surges have often followed prolonged periods of consolidation just below key resistance levels. The market remembers the $30,000 breakout in 2023 and the $69,000 breakout in 2024.
These thresholds triggered rapid upward moves after weeks of hesitation. However, the opposite scenario remains possible. A rejection near $115,000 could lead to quick profit-taking and a drop back below $112,000.
The pioneer crypto asset previously attempted to break through the critical $113,000 support but was immediately rejected each time.
Bitcoin challenged that level again as bulls started another rally on the last day. This time, however, the asset’s success was much greater, eventually surpassing that threshold. It continued to climb, reaching a 17-day high of $115K earlier this morning.
BTC bears will try to fight the $115,000 mark and push the price lower. The 50-day simple moving average (SMA) is near $114,500, which is a key area of interest.
According to the CryptoQuant Bull Score Index, eight of ten signals are flashing bearishly for Bitcoin. “Technical signal” and “Bitcoin demand growth” are the only two of the Bull Score Index’s ten components that are still positive.
The market cycle indicator, profit/loss index, stablecoin liquidity, and MVRV-Z Score have all moved into the “red zone.”
In line with expectations, the United States released its August consumer price index (CPI) data on September 11.
In line with expectations, the United States released its August consumer price index (CPI) data on September 11.
Unexpectedly, 263,000 unemployment claims—as opposed to the projected 235,000—reached a record high since October 2021. The confidence of market participants in a monetary policy easing by the Federal Reserve was further reinforced by growing concerns about labor market weakness.
According to Mike Novogratz, CEO of asset manager Galaxy Digital, there may be an upswing later this year; however, Bitcoin has probably been trading sideways as businesses focus on stacking altcoins. Bitcoin is currently undergoing consolidation. In an episode of CNBC’s Squawk Box on Thursday, Novogratz stated, “In part because you’re seeing a lot of these treasury companies in other coins take their shot.”
In addition to the ongoing positive developments in the space, such as Securities and Exchange Commission Chair Paul Atkins discussing updating securities regulations to help move markets on-chain, Novogratz said a Bitcoin surge could return as the US Federal Reserve begins its “cutting cycle.”
The CEO of Galaxy Digital cited the Nasdaq stock market operator’s Monday rule change filing with the SEC to permit tokenized versions of listed stocks and exchange-traded funds.