Bitcoin (BTC) marked a bullish beginning to the week by reaching new month-to-date highs, surpassing $27,000 on September 18. This surge of over 3% came as the week closed on a positive note in Wall Street trading.
Caution Amid Rising Open Interest
While the BTC price gained momentum, concerns arose about the surging open interest in Bitcoin futures contracts. Within hours, open interest increased by nearly $1 billion, reminiscent of a previous Grayscale-related incident.
BTC/USD 1-day chart. Source: TradingView
As Bitcoin broke the $26,800 barrier and aimed for $27,200, traders sensed an upward trend. Altcoins also started to show signs of life, making it an opportune period for asset acquisition.
Monitoring Buy Signals
Material Indicators, a tracking resource, issued daily buy signals for its proprietary trading tools, indicating growing bullish sentiment among traders.
BTC/USD annotated chart. Source: Michaël van de Poppe/X
Analyst Rekt Capital emphasized the importance of Bitcoin bulls regaining and maintaining higher price levels throughout September. He pointed to the crucial $27,100 mark, which previously acted as support and could now become resistance unless BTC closes the month above it.
BTC Unfazed by DXY Strength
Despite the impending Federal Reserve decision on interest rates scheduled for September 20, the U.S. Dollar Index (DXY) exhibited strength above 105, a level unseen since March. Historically, Bitcoin has shown an inverse correlation with the DXY, but it continued its ascent, reaching $27,000.
BTC/USD annotated chart. Source: Rekt Capital/X
James Straten, a research and data analyst at CryptoSlate, highlighted the stark contrast between the DXY’s strength and Bitcoin’s performance. He noted that the last time the DXY was at 105, Bitcoin was trading at under $20,000, demonstrating Bitcoin’s resilience to DXY movements.