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

Bitcoin By
Bitcoin Miner Riot Produces 450 Bitcoin In June
Bitcoin Miner Riot Produces 450 Bitcoin In June

Important points

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

  • Charts indicate that swing trader will be selling intra-day rally peaks.

The crypto market was volatile Tuesday, as Bitcoin prices (BTCEther () reached a new daily high of $114,000 and Bitcoin (ETHThe SOL (Solana’s SOL) moved up briefly to $4.110. Solana’s SOLSOLThe price of, also tried to rise above $200 with a short rally. It reached $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 liquidated 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

The chart provided by Hyblock’s analysts shows the move from $107,453 to $114,000 in line with Bitcoin’s 4-hour open interest anchored and its volume delta. This breakout rally coincided with an increase in BTC’s funding rate. It is likely that this was driven by the futures market. 

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,” 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.