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

Important points

• Crypto traders are returning to the market as spot and futures trading volumes rise.

• 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 () reached a new daily high of $114,000 and Bitcoin (ETHThe SOL (Solana’s SOL) raised to $4.110 in a very short time. 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’s increasing open interest, and indicate that traders have returned to the market following the Oct. 10 crash, when $20 billion worth of futures were liquidated.

Evidence of Proof traders rejoining the market Data from CoinGlass shows that Bitcoin futures’ open interest has risen above $32 billion since its low of $28 billion on Oct. 11.

Analysts at Hyblock provided a chart that showed the rise to $114,000, from $107,453. This coincided with Bitcoin’s 4-hour-anchored open interest turning positive and its cumulative volume delta. This breakout rally coincided with an increase in BTC’s funding rate. It is likely that futures markets are 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.