Bitcoin Begins To Form A Bottom? Why $40K Is The Next Target

Bitcoin has seen more greens in the last day as it climbs its way back above $39,000. As of press time, BTC’s price was rejected at those levels, but the bulls are showing some conviction and could push further into previous highs. Related Reading | TA: Bitcoin Near Crucial Juncture: Why BTC Could Surge Further The first crypto by market cap, at the time of writing, is exchanging hands at a price of $38,654 with a 4.2% profit in 24-hours. In the short term, bulls seem to have the upper hand as market conditions are favorable of a short squeeze. As NewsBTC reported yesterday, the macro-economic factors pushing down Bitcoin will abate for the coming weeks potentially aiding a relief rally into mid-March. In a recent report, Glassnode identifies a shift in bias from market participants from a majority of long positions during Q4, 2021, to mostly short in January 2022. Despite the recent downtrend, the Open Interest (OI) across the Futures sectors has increased and sits at a nearly two-year high. Glassnode claims the Futures sector has been seeing a decrease in its trading volume since 2021 standing close to $60 billion a day as Bitcoin reached the low $30,000s. In the meantime, OI records a 1.3% of BTC total market cap which could suggest a deleveraging event is in the making. In other words, whenever Bitcoin reaches an OI above 1% of its total market cap, BTC’s price is quickly propelled into either direction. As seen below...