As bitcoin price remains in its range-bound channel, other indicators are slowly turning bullish for the king of crypto. BTC has held on to five figures as we begin the weekend and bigger things could be in store as open interest mounts up.
Binance and BitMEX Building Up Bitcoin
Looking at on-chain flows for the past 24 hours shows positive action going on at a number of the world’s largest exchanges. The inflow has exceeded the outflow of bitcoin on Binance, BitMEX and Bitstamp indicating that accumulation has started to occur.
See more at https://t.co/u90eafRrXh
— TokenAnalyst (@thetokenanalyst) September 6, 2019
While prices across the board have taken a slight dip over the past 24 hours, bitcoin price remains relatively stable within its consolidation range. Since the same time, last Saturday BTC has gained almost 8% but has yet to form a clear direction.
That could be all about to change as the futures market heats back up. Open interest is a measure total number of outstanding futures contracts that have not been settled for an asset. It provides a good picture of trading activity and direction of monetary flow.
For BitMEX at least it is the fourth time this summer that OI has reached $1 billion which is a bullish signal.
Bitmex open interest – 4th attempt this summer > $1bln
Fasten your seatbelt! pic.twitter.com/cE9m43PX16
— skew (@skew_markets) September 6, 2019
Yesterday, crypto trader ‘Cantering Clark’ noted that overall OI was almost the highest it has been this year so, despite the sideways price action, bitcoin appears to be generating momentum.
“Almost the highest OI that we have had all year. I tell you what, this area is either going to be one hell of a base or one hell of a trap.”
— Cantering Clark (@CanteringClark) September 6, 2019
BTC dominance is also at a two year high this week as it topped 73% according to Tradingview.com. Back when bitcoin market share was at a similar level it was priced around $2,500 with a market cap of roughly $40 billion. A lot has changed since then with BTC prices and market cap being four times higher now.
All of this action may have been driven by Bakkt which has just activated its warehouse custody services in preparation for final futures launch later this month.
“Now accepting customer bitcoin deposits and withdrawals. Only 17 days until the Bakkt Daily and Monthly Futures contracts launch on Sep 23.”
Bakkt Warehouse custody is live.
Now accepting customer bitcoin deposits and withdrawals. Only 17 days until the Bakkt Daily and Monthly Futures contracts launch on Sep 23.
— Bakkt (@Bakkt) September 6, 2019
As we have seen every time bitcoin price drops into four figures, it does not remain there very long. A large amount of accumulation is clearly happening and a lot of it could be in anticipation of further institutional interest in Q4 this year.
Will bitcoin price surge later this year? Add your thoughts below.
Images via Bitcoinist Image Library, Twitter: @thetokenanalyst, @skew_markets, @CanteringClark, @Bakkt