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

Bitcoin By
Bitcoin Lacked Mainstream Media Coverage In Q2: Report
Bitcoin Lacked Mainstream Media Coverage In Q2: Report

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.

Bitcoin’s price volatility on Tuesday was a result of the Bitcoin exchange rate (BTCEther, (ETHThe SOL (Solana’s SOL) continued to climb, reaching $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 liquidated futures.

Proof of Purchase traders rejoining the market The data of CoinGlass, which shows Bitcoin Futures Open Interest rising from a low on October 11 at $28 Billion to a high of $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 volume delta going positive. A rise in BTC funding rate was seen along with the breakout rally, hinting that futures markets were driving this move. 

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

Analysts said traders would begin targeting the biggest liquidity zones as Bitcoin prices re-establish 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 is a technical analyst at Cointelegraph. He said: “Data suggests traders are becoming more comfortable adding 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. 

This article contains no investment recommendations or advice. Each investment or trading decision involves some risk. Readers should do their own research before making any decisions.