• Bitcoin prices increased 2.7% on the weekend, due to US debt ceiling negotiations and investor optimism.
• The price of Bitcoin must break through $27.8k resistance to flip the bearish market structure into a bullish one.
• The surge in Open Interest that accompanied the move indicates strong performance from bullish speculators.
Overview
This article discusses Bitcoin’s recent pump of 2.7%, which was triggered by US debt ceiling negotiations and accompanying investor optimism. It also evaluates the current market structure, highlighting the need for buyers to break through the $27.8k resistance level in order to flip it from bearish to bullish. Lastly, it looks at the surge in Open Interest that came with this weekend’s pump, indicating strong performance from bullish speculators.
US Debt Ceiling Negotiations
On Saturday, Democrats and Republicans reached a deal in principle regarding US debt ceiling negotiations, averting a potential disaster of US debt default which appeared to cheer up investors and cause Bitcoin prices to increase by 2.7%. This move saw nearly $400 million added in Open Interest (OI).
Market Structure
For over two weeks, Bitcoin has traded beneath $27.8k resistance – a major resistance level because of its importance in early April – which has been tested multiple times as support but eventually flipped to resistance when buyers succumbed. At present there is an established range (orange) between $26.1k and $27.6k with RSI overbought territory on the 2-hour chart after BTC passed mid-range mark at $26.8k . While this is a sizable move within the range, larger picture shows bears still have upper hand so buyers must beware liquidity hunts at around $28k area before flipping market structure from bearish to bullish can happen..
Open Interest Surge
The surge in OI that accompanied Saturday’s pump indicates strong performance from bullish speculators as they were able to remain optimistic despite bearish market structure seen on daily and 4-hour charts..
Conclusion
Overall, it appears that while traders should be aware of liquidity hunts near $28k area before flipping market structure from bearish to bullish can occur; Saturday’s U S debt ceiling negotiations & investor sentiment have provided enough momentum for bitcoin prices to increase by 2 7% & enabled bulls gain some ground against bears despite underlying bearishness seen on higher timeframe charts