Close Menu
ADVERTISE

Bitcoin Futures Traders Return To Pump BTC: How long will it last?

Bitcoin By
Quantum computers could bring lost Bitcoin back to life: Here’s
Quantum computers could bring lost Bitcoin back to life: Here’s

Important points

  • The crypto market is gaining momentum as traders return to the spot and futures markets.

  • Charts suggest that swing traders are likely to sell intraday rally tops.

The crypto market was volatile Tuesday, as Bitcoin prices (BTCEther, (ETHThe SOL (Solana’s SOL) held a slight lead at $4,110. Solana’s SOLSOL(also attempted to break through the $200 mark with a rapid rally up to $198. In Bitcoin’s instance, the breakout rallies are in line with BTC rising open interest, and indicate that traders have returned to the market following the Oct. 10 devastating sell-off which resulted in the liquidation of $20 billion worth of futures.

Proof of Purchase traders rejoining the market The data of CoinGlass, which shows Bitcoin Futures Open Interest rising from its October 11 Low at $28 Billion to above $32 Billion can be seen.

Bitcoin Futures Open Interest Source: CoinGlass

Analysts at Hyblock provided a chart that showed the rise to $114,000, from $107,453, aligning with Bitcoin’s 4-hour-anchored open interest as well as its cumulative volume delta. This breakout rally coincided with an increase in BTC funding rates, which suggests that futures markets were driving the movement. 

Bitcoin open interest delta and cumulative volume delta. Source: Hyblock

Analysts said traders would begin targeting the biggest liquidity zones as Bitcoin prices re-established themselves into a range after the sell-off. This dynamic was evident today, as BTC’s price consumed topside liquidity between $114,000 and $115,000, as shown by the price of BTC. 

BTC/USDT liquidation heatmap. Source: Hyblock

Related: Price predictions 10/20: SPX, DXY, BTC, ETH, BNB, XRP, SOL, DOGE, ADA, HYPE

Rakesh Upadhyay, Cointelegraph’s technical analyst, said that the data shows traders becoming more confident about taking on risk. “sellers are expected to continue closing profitable positions at intra-day range highs,” Bulls, however, are not expected to be a common sight. defend the $107,000 support. 

This article contains no investment recommendations or advice. Risk is inherent in every investment decision and trade. The reader should always do research prior to making a final decision.