This Is When The BTC Rally Will Begin (Analyst)

TL;DR

Bitcoin broke above $63,000 after a Fed rate cut, with experts predicting a potential bull market soon. The increase in open interest suggests potential volatility ahead, with both bullish and bearish scenarios. A big rally in the following days?

Despite not starting September on the right foot, Bitcoin (BTC) saw an uptrend following the US Federal Reserve’s decision to cut interest rates by 0.5%. The price of the main cryptocurrency was around $59,000 on September 18 (when the central bank held its FOMC meeting), while it is currently trading at over $63,000.

BTC Price, Source: CoinGecko

Several industry participants think that BTC is preparing for a much more impressive rise in the near future. An example is Crypto Rover (an X user with over 800,000 followers on the social media platform). He claimed that “Bitcoin’s bull market will begin in the next 15 days.”

The analyst described the latest halving as a catalyst, saying a massive resurgence could be seen 170 days after the event. The halving, which halves the rewards for miners for validating transactions on the network, took place in April of this year, or 155 days ago.

KALEO and Mikybull Crypto share a similar thesis. The former thinks that “we haven’t seen the real bull market of this cycle yet.”

Mikybull Crypto noted the formation of an “inverse head and shoulders” pattern on the BTC price chart, suggesting that this could be followed by a rally to a new all-time high of $83,000.

Volatility ahead?

An important factor that indicates that the price of BTC may witness serious ups or downs in the near future is the open interest. The metric, which refers to the total number of open contracts, such as futures or options, that have not yet been settled, has been rising recently and now exceeds $18 billion.

The increase in open interest combined with BTC’s recovery price generally indicates a bullish trend as more traders supposedly enter the ecosystem with long positions.

However, if the metric heads north while the asset’s valuation is declining, it could suggest that market participants are jumping on the bandwagon with short positions, waiting for another drop.

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