Bitcoin Price Prediction Next Week: BTC expects volatility of $30,000 as open interest nears 1-year high

As the sun sets on another volatile week for Bitcoin, traders are bracing for another ride in the coming days. With the Open Interest (OI) metric hitting its 1-year high, Bitcoin (BTC) is on the verge of significant price volatility and is looking to hit $30,000 next week.

Traders are unhappy with the SEC

Bitcoin traders are currently unhappy with the recent price action, especially given that the price has not breached the $30.00 threshold for the past few weeks. This disappointment is compounded as many Bitcoin exchange-traded fund (ETF) applications are experiencing delays or remain subject to regulatory scrutiny.

Interestingly, there has been a significant increase in open interest (OI) for bitcoin futures contracts, indicating increased demand from institutional investors. According to data from CryptoQuant, the OI metric is currently trading at $10 billion after recently hitting a near-year high of $10.4 billion. This level was last seen in November 2022 when BTC price broke through $20,000.

However, due to FTX’s downturn at the time, the price failed to maintain its bullish momentum. Now the same level has been reached again and traders are optimistic that there could be a bullish comeback next week.

Open interest refers to the total number of outstanding derivative contracts such as futures and options that have not yet been settled. A rise in this number indicates increased activity in the market and can herald potential price moves, especially when combined with volume.

The fact that bitcoin open interest has hit a 1-year high is a strong indicator that traders are increasingly hedging their positions or speculating on the price action. This is a sign that the market is preparing for a significant move closer to its psychological $30,000 level.

What’s next for the BTC price?

Bitcoin tried to scale above $30,000 this week but failed to gain buying momentum near higher levels as bears capitalize on uptrends to sell. At the time of writing, BTC is priced at $29,424 and is up over 0.1% in the past 24 hours.

BTC price volatility has decreased and is between $29,300 and $29,500. With both moving averages flattening out and the Relative Strength Index (RSI) hovering around the midpoint, it suggests that this sideways movement could continue for a while.

Predicting the direction of the breakout is a challenge when prices remain in such a tight range. Still, traders should expect a significant move next week.

A drop below $29,100 could push the price into the $28,300-$28,700 range. On the other hand, if the price breaks out and stays above $30,200, it could set the stage for a surge to $31,500. Clearing this hurdle could pave the way for a rally to $32,000.

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