Close Menu
ADVERTISE

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

Bitcoin By
Bitcoin Faces Resistance as Bearish Divergences Emerge
Bitcoin Faces Resistance as Bearish Divergences Emerge

The following are key points.

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

  • Charts indicate that swing trader will be selling intraday rally highs.

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) saw a slight increase to $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’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.

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. A rise in BTC funding rate was also seen with the breakout rally, suggesting futures markets were driving it. 

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

As Bitcoin’s price settles into a new range following the recent selloff, analysts predict that traders will start to focus on the areas with the most liquidity. Today, this dynamic played out as BTC prices consumed liquidity at the topside in the range of $114,000-$115,000. 

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 adding 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.