After falling to a 50-day low of $38,500 on January 23, Bitcoin price fell to a 50-day low of $38,500 on January 23, as market data trends suggest investors are poised for a bullish start to February. It rebounded by 10%.
Bitcoin (BTC) suffered bearish price movements after the SEC's verdict approving spot ETFs on January 11, as speculators took advantage of the media euphoria to lock in profits, leading to BTC fell to a 50-day low of $38,500.
After fiercely defending the support at $39,000, bullish Bitcoin investors are now making strategic moves to engineer a significant price rebound in February.
BTC open interest increased by $350 million in the past 3 days
Bitcoin ETFs have been trading for two weeks, and the wave of news selling is starting to subside. Additionally, Bitcoin’s resurgence above the $42,000 level appears to have restored confidence in both spot and derivatives markets.
Coinglass' open interest data shows the nominal value of all active futures contracts for a particular cryptocurrency. The chart below shows that as of January 27th, BTC's open interest was $17.3 billion. However, as of January 29th, it had increased to $17.7 billion. This is an increase of more than $350 million over the past three business days.
The $350 million increase in open interest suggests increased investor confidence and market participation as BTC quickly recovered from its local low of $38,500. BTC price has settled within the $41,000-$42,000 range, but the rise in open interest indicates a potential price breakout within the next few days.
Investors moved $220 million worth of BTC into long-term storage
While Bitcoin investors in the derivatives market have increased their positions, traders in the spot market have also been making strategic bullish moves recently. CryptoQuant's exchange supply data monitors real-time changes in the number of his BTC coins deposited across trading platforms.
The latest data shows that BTC has been moving significantly off exchanges since the rebound phase began on January 25th.
As shown below, the total BTC deposited into wallets hosted by crypto exchanges was just over 2,106,054 BTC as of January 25th. This number has since declined and is down to 2,100,821 BTC as of January 29, at the time of writing.
This suggests that investors moved 5,233 BTC into long-term savings within the past 4 business days.
Reduced exchange supply means investors are opting for long-term storage options rather than seeking short-term profit opportunities on trading platforms, which could have a bullish impact on Bitcoin prices. There is.
Selling pressure on Bitcoin is expected to decrease significantly as investors opt for long-term storage. Valuing at the average intraday price of $42,000 on January 29, the 5,233 BTC transferred from the exchange is worth approximately $220 million.
Such a significant shortfall in market supply suggests that increased demand next week could trigger a breakout of Bitcoin price towards the $45,000 level.
Prediction: Could BTC price reach $45,000 in February?
Bitcoin price is likely to retest $45,000 in February. Trends in market data show that selling pressure from the euphoria following the ETF approval has subsided, with investors recently moving $220 million worth of BTC into long-term storage.
The Bollinger Bands signal highlights important reversal points that could influence Bitcoin price movements in the coming days.
This technical indicator shows that BTC price is currently trading at $43,088, above its 20-day simple moving average (SMA) price of $42,163. This unusual market trend confirms that BTC's short-term market momentum has reversed in a bullish direction.
As shown below, the next major resistance level is currently located at the top of the Bollinger Band at $45,300.
Still, if the bears can force a reversal below $38,000, this bullish narrative could be invalidated. However, as highlighted by the lower Bollinger Band above, the bulls are likely to regroup in the $38,572 area to prevent further losses.
