Analysts affirm Bitcoin bull market resumes, targeting $200,000

Bitcoin price has historically been low in September. Current price action suggests the trend is set to change. 

Bitcoin propelled higher, analysts set bullish targets for ongoing rally

Bitcoin crossed the $51,000 level over the weekend, and traders on crypto Twitter started buying in a coordinated manner. Twitter and Reddit users moved to buy $30 worth of Bitcoin each to support El Salvador's Bitcoin law coming into effect on September 7. 

Traders anticipate an explosive price surge in response to the coordinated price pump, similar to online campaigns that targeted meme stocks like GameStop in February 2021. 

Pseudonymous analyst @Pentosh1 took to Twitter to share details of his Bitcoin price predictions that were accurate through the February 2021 rally. Based on @Pentosh1's system, $180,000 is the top for the current cycle.

Another full-time crypto trader, @FeraSY1, has set the bullish target at $200,000. The trader has noted that historically Bitcoin tops the 227.2% Fibonacci extension of the previous bear market Fibo structure. If this trend continues, he expects BTC to hit a new all-time high at $200,000. 

Bitcoin is trading above $51,000 and lies in a zone of interest where a pullback is less likely to occur. "The second great re-accumulation" of the BTC bull market started less than a week ago. Willy Woo, cryptocurrency trader and analyst, states that a BTC price squeeze is now imminent. 

Medium-term investors that are known to speculate continue BTC accumulation at the $50,000 level. Since most of the buying on crypto exchanges has come from medium-term investors, it remains to be seen whether long-term investors will scoop up BTC. 

If buying activity from long-term investors does not ramp up, analysts expect selling pressure at the next resistance level at $60,000. 

Interestingly, Bitcoin open interest is on the rise while funding rates remain neutral. Open interest represents demand from market participants since it is the total number of futures contracts held by investors at the end of a trading day. A rise in open interest implies increasing demand from traders. 

Combined with funding rates, this metric is used to predict the direction of Bitcoin's price action. The funding rate is an indicator that measures periodic payments made to traders that occupy long and short positions based on the difference between perpetual contract and spot market prices. When rates are negative for a long time, it signals traders' lack of appetite for the asset. 

Open interest has hit a peak of $12.5 billion. High open interest and neutral funding rates suggest that there is room for an extended price rally. 

Daniel Joe, a cryptocurrency analyst, states that the asset has upside potential. 

FXStreet analysts expect Bitcoin to hit a target of $57,000 as long as it stays above the $47,000 level.