Bitcoin Futures traders return to pump BTC: will it Last?

The following are key 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.

Bitcoin’s price volatility on Tuesday was a result of the Bitcoin exchange rate (BTCEther, (ETH() made a short push up to $4.110. Solana’s SOLSOL(also attempted to break through the $200 mark with a rapid rally up to $198. These breakout rallies in Bitcoin are consistent with the rising BTC open interest. They also suggest traders returning to the markets after the October 10th sell-off that saw 20 billion dollars in liquidations of futures.

Evidence 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.

The chart provided by Hyblock’s analysts shows the move from $107,453 to $114,000 in line with Bitcoin’s four-hour open interest and volume delta becoming positive. A rise in BTC funding rate was also seen with the breakout rally, which suggests that futures markets were driving this move. 

As Bitcoin’s price settles into its post-selloff range, analysts say traders will start to focus on the zones with the most liquidity. Today, BTC prices were absorbing topside liquid in the range of $114,000-$115,000. 

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,” While bulls can be expected to defend the $107,000 support. 

The article is not intended to provide investment advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.