- Brandt’s long Bitcoin position signals growing confidence after the bullish reversal.
- Bitcoin needs a four-hour close above $81,255 to confirm renewed upside momentum.
- Rising open interest supports recovery, but weak spot flows could limit further gains.
Bitcoin continues to trade near $80,000 as buyers defend key technical levels and leverage returns to the market. The cryptocurrency recently changed hands around $79,759 after a strong advance pushed it toward major resistance.
Brandt Bets on Bitcoin’s Breakout
Brandt recently disclosed several active trades, including a long Bitcoin position. He also holds long positions in wheat, soybeans, corn, soybean meal, sugar and the Mexican peso. Additionally, he maintains a short position in lean hogs.
The trader did not disclose his Bitcoin entry price, position size, leverage or exit target. Consequently, his trade offers limited guidance for investors seeking a specific price objective.
However, Brandt’s latest position reflects a meaningful shift in his technical outlook. He previously expected another Bitcoin decline with approximately 60% probability. That view changed after Bitcoin completed an inverse head-and-shoulders formation.
$81,255 Becomes the Key Test
Bitcoin’s four-hour chart currently shows a firmly bullish structure. The cryptocurrency trades above its 20, 50, 100 and 200-period exponential moving averages.
The 20 EMA currently sits near $79,084 and provides the nearest important support. Below that level, Bitcoin could test $77,283, which marks the 0.786 Fibonacci retracement.
Moreover, the 50 EMA around $76,515 offers another important defense for buyers. Deeper support appears near $74,165, followed by the 100 EMA around $72,884.
On the upside, Bitcoin faces immediate resistance between $80,000 and $80,500. A decisive four-hour close above $81,255 could confirm renewed upside momentum.
Significantly, such a breakout could expose Bitcoin to targets above $83,000. However, repeated failures near resistance could encourage short-term profit-taking.
The Bollinger Band %B reading of 0.68 also supports a measured bullish view. Bitcoin has entered the upper half of its volatility range without reaching an extreme reading.
Rising Open Interest Raises the Stakes
Bitcoin’s derivatives market shows a major change from the deleveraging seen earlier this year. Open interest previously fell from above $60 billion toward $30 billion to $35 billion.
That decline reflected widespread position closures and reduced leverage during Bitcoin’s earlier weakness. Recently, however, open interest recovered toward $56.48 billion.
Additionally, Bitcoin traded near $80,258 as open interest increased. This combination suggests traders are rebuilding leveraged positions alongside the price recovery.
Hence, rising open interest could support further gains if buyers maintain control. Nevertheless, expanding leverage also increases liquidation risks during sharp reversals.
A sustained move above $60 billion in open interest could strengthen the recovery narrative. Conversely, a decline below $50 billion could signal renewed caution.
Spot Flows Remain a Potential Headwind
Bitcoin’s spot flows present a less convincing picture than its price structure. Outflows frequently dominated the broader period, particularly during several major market declines.
Inflows appeared during February, April, June and August, but those moves lacked consistent follow-through. More recently, flows have fluctuated around the zero line.
On August 28, Bitcoin recorded a modest net inflow near $17.73 million. That reading suggests selling pressure has eased somewhat.
However, the data does not yet provide strong evidence of aggressive accumulation. Therefore, Bitcoin needs sustained spot demand alongside the technical breakout.
Technical Outlook For Bitcoin Price
Key levels remain well-defined heading into September:
Upside levels: $80,500 and $81,255 represent the immediate hurdles. A decisive breakout above $81,255 could open the path toward $83,000 and potentially $85,000.
Downside levels: $79,084, the 20 EMA, provides immediate support, followed by $77,283 and $76,515. A deeper correction could expose $74,165 and $72,884.
Resistance ceiling: $81,255 is the critical level to reclaim for stronger medium-term bullish momentum. Bitcoin’s bullish EMA structure continues to support the broader uptrend.
The technical picture suggests BTC is consolidating beneath major resistance after a strong advance. A sustained breakout could trigger renewed momentum and volatility expansion.
Related: Bitcoin’s Center of Gravity Is Shifting East: Why India Could Fall Behind
Will Bitcoin Go Up?
Bitcoin’s September outlook hinges on whether buyers can defend $79,084 while building enough momentum to challenge the $81,255 resistance. Rising open interest suggests traders are rebuilding positions, although this also increases liquidation risk.
If buying pressure strengthens and spot flows remain positive, BTC could break above $81,255 and target $83,000 or higher. However, failure to hold $79,084 could trigger a pullback toward $77,283 and $76,515.
For now, Bitcoin remains in a pivotal zone. The bullish structure favors buyers, but confirmation above $81,255 remains crucial for the next major leg higher.
Related: Could Trump’s Venezuela Oil Deal Lower Oil Prices and Help Bitcoin Reach $100K Again?
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
