Bitcoin [BTC] has broken through the $17.6k-$17.8k resistance zone and is currently trading at $18.1k. Despite resistance at $18.2k and $18.6k at the time of publication, the bulls continued to make a strong case for further gains. A lack of efficiency further north made a BTC move towards $20k more likely by the day.
As a result, meme coins like Shiba Inu [SHIB] experienced bullish market sentiment. The coin was trading near a level of resistance from mid-November. The previous break above this level was swiftly reversed. Will this rally suffer the same fate?
Demand has been strong recently and the rally could smash past nearby resistance levels
The RSI on the four-hour chart remained above neutral 50 to show bullish momentum. Meanwhile, the OBV has made a series of higher lows in January. Together, they suggested the bias remained bullish for Shiba Inu.
The market structure was also bullish, but a drop below $0.00000855 would change this bias. In the past couple of days, the $0.0000088 level has been defended as support, which encouraged lower timeframe bulls to bid once more.
The daily chart showed that the $0.00000943 mark was not broken on the previous move above it, back on 5 December. Thus, the daily session close was beneath this level despite the short-term move to $0.00001 on that day. This time, a daily close above the resistance could add to the bullish sentiment.
The Open Interest rises to show bullish momentum drove the market
Data showed Open Interest has been rising swiftly over the past two weeks. The lower timeframe trend has also been bullish since late December. Therefore, participants were willing to bet on further gains, as a rising OI, alongside rising prices, indicated strong bullish sentiment.
In the past few hours, some short positions were liquidated as SHIB bounced from the $0.0000088 mark. The funding rate was also positive and did not show bears were fading this move yet. Hence, a breakout past $0.0000094 and a retest can offer a buying opportunity.