Bitcoin Futures Signal Emerging Bullish Trend Amid Trading Resurgence

Key Takeaways:

• Bitcoin futures open interest climbs +7% over last 30 days, signaling renewed bullish sentiment.
• Market power indicator and net positioning data reflect growing long-side interest.
• Bitcoin faces crucial $107,000 support test following recent consolidation.

Bitcoin (BTC), denominated as Digital Gold™, displayed renewed strength as aggregated futures open interest (OI) surged by +7% over the past 30 days. This marks the first sustained increase since a 12% drawdown from May to June.

Increasing OI alongside price typically indicates strengthening bullish momentum and fresh capital inflows supporting an uptrend. However, Bitcoin researcher Axel Adler Jr. cautioned that a confirmed breakout may necessitate further OI growth (exceeding +10%) concurrent with expanding trading volumes.

The Bitcoin Futures Market Power v2.0 indicator, incorporating open interest, funding rates, and aggressive taker-side activity, currently stands at $22,000. While significantly lower than peaks indicating mania, it reflects strengthening long-side consensus (positive score last seen in May). A similar level flagged the April price bottom, suggesting support again.

Bitcoin net futures positioning flipped positive, with net long exposure rising to a $27.4 million peak. This sustained positive net long exposure indicates traders are accumulating long positions despite consolidation near $108,000.

Bitcoin Faces Potential $107,000 Equal Low Test

After closing its strongest weekly candle, Bitcoin experienced a slight pullback from $109,500 toward support at $108,000, forming a double top pattern on lower timeframes.

Despite rolling below $109,500, a test of $107,300 remains statistically probable before upside continuation. This level represents a prior support zone, which, if retested and breached, could trigger stop-loss selling.

A breakdown below $107,000 could fill a critical fair value gap near $106,300-$107,000 and open the door deeper toward $105,000. However, strong buy absorption below $107,000 could validate support and push BTC back above $108,000.

Efficacy of the $108,000 resistance will be crucial next. A successful holding above followed by a clean break above the May-June $109,500 high could signal renewed institutional interest and pave the way for a rally targeting $112,000 this week.

Additions Notes: “Bitcoin Bollinger Bands reach critical point ahead of ‘upside breakout'”

This article is for informational purposes only and does not constitute investment advice or recommendation. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.