Bitcoin has weathered a wave of volatility in recent days, triggered by the escalating conflict between Israel and Iran. As geopolitical tensions rise and global markets grapple with uncertainty, risk assets like BTC have faced increased pressure. Yet despite this turbulent backdrop, Bitcoin has managed to maintain its footing above key support levels, demonstrating notable resilience. Related Reading: Ethereum Consolidation Continues – Altseason May Follow A Clean Break Above Resistance Currently trading just under its all-time high, Bitcoin is in a consolidation phase that many analysts view as the calm before a potential breakout. Top analyst Rekt Capital shared insights indicating that the final major Weekly resistance, which has previously capped price rallies, may now be weakening as a point of rejection. If confirmed, this shift could signal a critical turning point in the market structure and open the door to price discovery. Investors are watching closely as BTC holds strong while macro headwinds—including rising US Treasury yields and fears of energy disruptions—continue to swirl. With the broader market bracing for further developments in the Middle East, Bitcoin’s ability to maintain higher lows and approach resistance with momentum suggests that the bulls may soon reclaim full control. The coming days could prove pivotal for the next phase of BTC’s market cycle. Bitcoin Awaits Clarity As Middle East Tensions Shape Market Sentiment The conflict between Israel and Iran continues to dominate headlines and exert influence over global markets. As tensions escalate, investors remain cautious, closely monitoring geopolitical developments and their macroeconomic ripple effects. In this uncertain environment, Bitcoin has entered a consolidation phase, with neither bulls nor bears fully in control. The lack of a clear direction stems from diverging investor expectations. Optimistic market participants anticipate that a diplomatic resolution may be reached in the coming days or weeks. A peace deal could reduce market anxiety, drive oil prices lower, and reignite momentum across risk assets—Bitcoin included. On the other hand, more cautious investors fear that the situation could worsen. Prolonged conflict may spark volatility in the energy sector, push inflation higher, and strain economic stability, particularly in regions dependent on oil imports. This week may prove decisive for Bitcoin’s next major move. Price action remains tightly bound, but all eyes are on the long-standing Weekly resistance. According to Rekt Capital, the final major Weekly resistance—once a strong rejection point—now appears to be weakening. This shift in structure suggests that Bitcoin may be preparing for a breakout into price discovery territory, should macro conditions stabilize. Related Reading: Ethereum Holds Key Range Support – Bulls Set Sights on Higher Levels BTC Price Holds Above Key Support Amid Consolidation The 12-hour chart for Bitcoin shows that BTC continues to trade within a tight range, holding above the critical $103,600 support while struggling to break cleanly through the $109,300 resistance. This zone has repeatedly acted as a ceiling for price action since early May, with sellers stepping in around $109K and buyers defending dips near $104K. The recent bounce from just above the $103,600 level reflects ongoing buyer interest at that range, reinforced by the 100-day SMA (green), which is providing dynamic support. Meanwhile, the 50-day SMA (blue) is curling slightly upward, showing early signs of positive momentum, although the price has yet to clearly reclaim and hold above it. Volume remains moderate, indicating a lack of strong conviction on either side. For bulls to regain full control, BTC must push through the $109,300 resistance with sustained volume and hold that breakout level. A failure to do so may result in another rejection and a potential retest of the lower boundary near $103,600. Featured image from Dall-E, chart from TradingView
The Bitcoin Options traders have been pricing in low implied volatility, but on-chain data shows a setup ripe for amplified price swings. Bitcoin Options ATM IV Has Been Trending Lower In its latest weekly report, the analytics firm Glassnode has talked about how the volatility risk associated with Bitcoin looks from the perspective of on-chain analysis. Related Reading: Ethereum To $3,400? On-Chain Shows No Big Hurdles Ahead The indicator shared by Glassnode is the Realized Supply Density, which tells us about how concentrated the cryptocurrency’s supply is around the current spot price. When the value of this metric is high, it means the investors have participated in a large amount of buying at or near the asset’s latest price. “In such environments, even modest price fluctuations can affect a broad swath of investors, often amplifying market sensitivity and, in turn, volatility potential,” explains the analytics firm. Below is the chart for the indicator shared by in the report. As is visible in the graph, the Bitcoin Realized Supply Density has gone through an uplift during the past few weeks, which suggests accumulation has taken place around the current spot price. “This concentration raises the probability of outsized reactions to price movements, increasing volatility risk in the near term,” notes Glassnode. While on-chain data may hint that volatility could go up in the future, it would appear the traders on the Options market don’t quite think the same, as the At-The-Money Implied Volatility (ATM IV) has been going down. The IV is a metric that represents the traders’ expectations of how volatile Bitcoin will be over a given period, based on the pricing of Options contracts. The ATM version of the indicator specifically calculates this expectation based on Options closest to the latest spot price. Related Reading: Bitcoin Back At $109,000, But HODLer Profit-Taking Down 89% Here is a chart that shows the trend in the Bitcoin Options ATM IV across different expiration timeframes: From the above graph, it’s apparent that the Bitcoin Options ATM IV has been going down for all major tenors, an indication that the traders don’t expect high volatility for the cryptocurrency in the near future. “Historically, such complacency in volatility pricing has often served as a counter-trend signal, preceding periods of heightened volatility,” says the analytics firm. With on-chain data suggesting increased volatility risk and this signal forming at the same time, it now remains to be seen how Bitcoin would develop in the coming days. BTC Price At the time of writing, Bitcoin is trading around $108,800, up more than 3.5% in the last week. Featured image from Dall-E, Glassnode.com, chart from TradingView.com
Amid the Trump-Musk online feud, Bitcoin (BTC) has hovered within the mid-and-low areas of its local price range, hitting a one-month low near the $100,000 support. However, some analysts suggest that the cryptocurrency is preparing for the “real” price jump toward a new all-time high (ATH) Related Reading: SUI Rally At Risk? Analysts Warn Of 30% Dip If This Level Doesn’t Hold Bitcoin Prepares For ‘Real Breakout’ Over the past 24 hours, Bitcoin experienced significant volatility fueled by the online feud between US President Donald Trump and Tesla and X owner Elon Musk. The flagship crypto’s price took a beating on Thursday afternoon after dropping by over 5% from the $105,000 level to the $100,000 support. Before the pullback, BTC had been attempting to reclaim its local mid-range area after its recent performance. Notably, the cryptocurrency traded sideways following its ATH rally to $111,980, hovering between the $106,800 and $109,700 price range. However, the cryptocurrency lost the key $106,800 support amid last week’s market retracement, which saw Bitcoin drop to $102,000 over the weekend. Since then, BTC has been attempting to reclaim the current levels. After yesterday’s drop, the largest cryptocurrency by market capitalization has surged 4.5%, climbing above the $104,000 level. Crypto trader Coinvo highlighted BTC’s one-year chart, pointing to the similarly looking price action between 2024 and 2025. According to the chart, Bitcoin recorded its first major pump after reclaiming its yearly opening level, consolidating within its new range for weeks before climbing to its Q1 2024 ATH. This year, the cryptocurrency has had a similar performance, although delayed, having reclaimed the yearly opening range and surging to the first major price surge in May. Similarly, analyst Alex Clay suggested that Bitcoin is preparing for the “real breakout” following its retests of the range’s mid-zone resistance in Q1 2025 and a “false” breakout last month. To the analyst, “We grabbed the liquidity below the Broken Supply Zone. Now looking for a Real Breakout” toward the $120,000 mark. BTC Price To Range For Two Weeks? The Cryptonomist noted that Bitcoin displays a 3-week bullish falling wedge formation, with the lower boundary sitting around the $101,000 level. Following the recent price drop, BTC bounced from that area, and could break out of the pattern if it reclaims the $105,000 barrier as support, targeting the $118,000-$120,000 levels. Meanwhile, market watcher Daan Crypto Trades highlighted that its price now trades at the mid-range again, near the Monthly opening price. To the trader, “it’s pretty safe to assume that these range high/lows are good triggers for whatever larger trend follows,” as BTC has been having a “relatively large move early in the month.” As he previously explained, Bitcoin tends to set its monthly high or low during the first week of the month, followed by a reversal in the opposite direction and a trend continuation until a new month begins. Based on this, he warned that if the price drops below yesterday’s lows, it will continue to trend down for another week or two, displaying “weakness and confirming a larger correction is due.” Related Reading: Ethereum Eyes 15% Move Amid Key Resistance Retest – Breakout Or Rejection Next? Nonetheless, if price surges above the monthly highs, around the $106,700 mark, “the correction is more likely to be over and there’s a good likelihood that we head to all-time highs and beyond.” “Good chance we range around this area for a while, though, without any of these levels breaking,” he concluded. As of this writing, Bitcoin trades at $104,224, a 2.6% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Amid the market’s momentary pause, Bitcoin (BTC) has seen a 2% price drop in the past 24 hours. The largest cryptocurrency by market capitalization has been hovering between key resistance and support levels, with some analysts suggesting that volatility could be in BTC’s short-term future. Related Reading: Ethereum Ready For $3,000 Breakout? Analysts Say Sideways Action Is About To End Bitcoin Price Consolidates Near ATH On Wednesday, Bitcoin, alongside the rest of the crypto market, saw a small retrace ahead of the Federal Open Market Committee (FOMC) release of the May 6 and 7 Meeting Minutes. The flagship cryptocurrency dropped 2.7% from the $110,000 Daily Opening to a multi-day low of $107,107, suggesting a cautious approach from investors. Notably, Bitcoin has seen a significant 15% rally over the past month, hitting a new all-time high (ATH) of $111,953 nearly a week ago, and recovering around 50% from April lows. Since reaching its new ATH, Bitcoin has moved sideways, trading between the $106,800-$109,700 levels. Despite the small retracement, analyst Crypto Jelle considers that Bitcoin’s trend into price discovery remains “intact,” pointing out that price has been consolidating above the previous highs. Per the chart, the cryptocurrency is currently forming a symmetrical triangle pattern in the lower timeframes, with the upper boundary sitting between the $109,00-$110,000 mark. To Jelle, the cryptocurrency is “building pressure for the next leg higher,” with a breakout propelling the cryptocurrency to another 30% rally. The analyst previously highlighted a Power of 3 (Po3) formation in BTC’s chart, suggesting that its price expansion targets the $140,000-$150,000 level after reclaiming the new ATH resistance. Ali Martinez stated that BTC remains “range-bound” despite today’s price drop, but added that the range’s low is the key level to watch. He warned that a breakdown below the $106,800 support could trigger increased volatility, which might send BTC’s price to lower levels. BTC Retest To Trigger Volatility? Titan of Crypto also affirmed that Bitcoin currently sits at a key level. According to the market watcher’s analysis, BTC is “still hovering around the daily Tenkan,” which is the level to watch during the potential volatility from the FOMC Minutes. A breakdown from this support zone could send the cryptocurrency’s price to the next key support at around the $102,700 mark. On the contrary, holding the current levels could set the stage for a new retest of the range’s upper boundary. Meanwhile, Daan Crypto Trades noted that as Bitcoin consolidates near ATHs, BTC-based exchange-traded funds (ETFs) have seen significant inflows over the past few weeks, recording their second-best performance last week. As he explained, one of the cycle’s better “indicators” to determine strength or weakness at local tops or bottoms has been the ETF flows, detailing that, generally, big inflows after a big run, while BTC’s price doesn’t continue its rally, have suggested a local top. Related Reading: Bitcoin (BTC) To Continue Price Discovery Rally If It Holds These Levels – Analyst To the trader, “it is important for the bulls to get that move going quickly because getting billions of inflows without proper price progress isn’t generally the best,” adding that “for the effort that’s put in and an ATH break, you’d want to see more.” Daan considers that if the massive inflows stop and BTC’s price holds, then its short-term performance will likely continue. However, if price doesn’t hold its current range, “we might need to see a bit of a flush & panic first before the proper breakout move.” As of this writing, Bitcoin trades at $107,700, a 1.6% decrease in the weekly chart. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin is facing a crucial test as it struggles to break above key resistance levels while holding just above critical support. The market remains stuck in a tight range, reflecting growing indecisiveness among traders and investors. Uncertainty has become the new normal, with macro conditions and political developments continuing to cloud sentiment. Related Reading: Whales Dump 760,000 Ethereum in Two Weeks — Is More Selling Ahead? US President Donald Trump has added further volatility to the mix, unsettling financial markets with unpredictable policies and newly imposed tariffs. His erratic behavior has only intensified the fragile mood, pushing risk assets like Bitcoin into deeper consolidation. Despite brief rallies, Bitcoin has once again failed to break above descending resistance, according to crypto analyst Carl Runefelt. This rejection, paired with declining trading volume, is a sign that buyers may be losing strength. Runefelt warns that if volume continues to dry up and BTC remains stuck below key levels, the bearish target of $78,600 remains a strong possibility. While bulls are defending support zones for now, the lack of momentum is raising red flags. Unless Bitcoin can reclaim higher ground soon, the odds of a deeper correction will continue to grow — making the coming days crucial for determining the market’s next direction. Bitcoin Down 25% from January ATH As Bears Tighten Grip Bitcoin is now down 25% from its January all-time high, and bulls are struggling to regain control. After repeated attempts to reverse the trend, BTC continues to hold above the $81,000 level — a key support zone — but has failed to reclaim the $86,000 mark, which is necessary to confirm any serious recovery. The inability to push higher has weakened market confidence, and bulls now find themselves in a difficult position. Macroeconomic uncertainty and fears surrounding escalating trade wars, especially under U.S. President Donald Trump’s unpredictable policies, have added to market volatility. These factors continue to favor the bears, and the pressure on high-risk assets like Bitcoin remains intense. With broader financial markets under stress, bullish sentiment in the crypto space is fading quickly. Panic is beginning to set in for some investors as selling pressure shows no sign of slowing. However, there’s still a sliver of optimism among market watchers who believe that a bounce could follow once key resistance levels are reclaimed. Runefelt recently shared insights pointing to BTC’s failure to break above descending resistance — a bearish sign. He also noted that trading volume continues to decline, a sign that market participation is thinning out. This lack of volume often precedes large moves, and in this case, the bearish target of $78,600 remains firmly on the table if bulls fail to reclaim momentum. For now, the market remains on edge. Bitcoin’s ability to hold above $81K and attempt a move past $86K will be critical in determining whether a recovery is possible — or if the next leg down is about to begin. Related Reading: Chainlink Consolidates In Triangle Pattern – Is A 35% Breakout Imminent? Technical Details: Key Levels To Hold Bitcoin is currently trading at $83,500 after several days of choppy, volatile price action that has left traders uncertain about the market’s next direction. The recent swings between key levels have highlighted the indecision among both bulls and bears, with neither side able to take full control. For bulls, the immediate challenge is to reclaim the $85,000 level, which aligns with the 4-hour 200-day moving average (MA). A successful move above this mark would be an encouraging signal of short-term strength. Beyond that, the next key level is $86,000, which is where the 4-hour exponential moving average (EMA) sits. Reclaiming this zone would help shift momentum back in favor of the bulls and potentially set the stage for a recovery attempt toward $90,000. Related Reading: Whales Offload 200M Cardano During March – The Start Of A Trend? However, the most critical level in the short term is support at $81,000. This price zone has acted as a strong floor in recent weeks, and losing it would likely trigger further downside pressure. As macro uncertainty and market-wide volatility continue, bulls must defend this support while working to reclaim the MAs above. The coming sessions will be crucial in defining whether Bitcoin can recover—or slide deeper into correction territory. Featured image from Dall-E, chart from TradingView
Bitcoin’s volatility is near one of its lowest levels in years, and it is primed for a short-term move.
Amid the recent market shakeouts, Bitcoin (BTC) has shown strength, remaining near the crucial $100,000 barrier during its drops. While the flagship cryptocurrency is momentarily expected to continue its horizontal trajectory, some analysts forecast that BTC’s next leg up might start once it reclaims the recently lost key level. Related Reading: Memecoins Crowned As ‘Defining Narrative Of 2024’, What’s The Next Key Sector To Watch? Bitcoin Volatility Lower Than Q1 2024 The post-election pump saw the crypto market jump to new highs, with Bitcoin leading the climb. Two months ago, the flagship cryptocurrency crossed the $100,000 barrier for the first time, hitting $108,000 in mid-December. However, the market has seen several significant shakeouts since then, which has halted investors’ sentiment. Following its December peak, the flagship crypto recorded a 14% retrace, sending its price to the lower zone of its $90,000-$108,000 post-election range. In early January, BTC recorded a similar pullback after reclaiming the $100,000, falling nearly 13% before rebounding. Mid-month, Bitcoin retraced another 10% after hitting its latest all-time high (ATH) of $109,588 but held the $100,000 mark in the following days. However, the most recent correction saw BTC fall 14% from its Friday high of $106,000 and nearly 10% in 24 hours, triggering the largest single-day of crypto liquidations. Despite these retraces, Bitcoin has bounced from the local lows and continues to move within the mid-zone of its post-election range. Market observer Daan Crypto Trades noted that BTC’s volatility has been “relatively low” in the past few weeks, especially compared to the start of 2024. The cryptocurrency saw more violent swings when Bitcoin passed the $70,000 region in March, retracing up to 20% during these corrections. Since then, Volatility has “slowly dwindled” while Bitcoin’s price has been “creeping higher this cycle.” Bitfinex analysts previously noted the cycle’s “unique” conditions that drove the diminishing trend. According to the report, mainstream recognition, institutional adoption, and increasing confidence in the sector have kept BTC’s corrections smaller than past cycles, likely to continue for the rest of the bull run. Is A Takeoff Coming Soon? As BTC’s price continues to move sideways within its range, the flagship crypto looks “much stronger” than most of the market, “still looking perfectly fine when zooming out.” Daan added that “the demand for BTC is just so much higher compared to the rest of the market, especially during times of uncertainty.” However, crypto analyst Miles Deutscher highlighted that BTC’s search interest “is still sitting way below 2021 levels, despite sitting just under $100k.” This suggests that institutions are fueling the Bitcoin bull run while it is “no longer reliant on retail mania to pump BTC prices.” Related Reading: Solana (SOL) $200 Level Recovery Looks ‘Very Solid’, Is The Bleeding Over? Meanwhile, crypto analyst Jelle stated that Bitcoin is playing out similarly to Q1 2024, listing the “choppy” period, liquidity being taken out, and the Moving Average Convergence Divergence (MACD) retests as “flashing” signals again. This performance preceded the flagship crypto’s breakout to its March 2024 ATH and, if history repeats, could signal a price takeoff soon. Nonetheless, Jelle added that $100,000 remains the level to break and hold before any major price move. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin has retreated 13.7% in the last 12 days, leading to the Crypto Fear & Greed Index recording its lowest score since Oct. 15.
Data shows that the indicators related to the Bitcoin derivatives market have recently been heating up, which could lead to more volatility in BTC’s price. Bitcoin Open Interest & Leverage Ratio Have Shot Up As pointed out by CryptoQuant community analyst Maartunn in a new post on X, the Bitcoin Open Interest has registered a sharp increase alongside the asset’s return above the $100,000 level. The “Open Interest” here refers to a metric that keeps track of the total amount of derivatives positions related to BTC that are currently open on all centralized exchanges. Related Reading: Bitcoin Returns Above $100,000 As Monthly Inflows Hit $80 Billion Below is the chart shared by the analyst that shows the trend in the percentage change of the Bitcoin Open Interest over the past month: As displayed in the graph, the Bitcoin Open Interest has witnessed a sharp positive change recently, which implies a large number of positions have popped up on the market. In the chart, Maartunn has highlighted the previous instances of the indicator observing a large percentage increase. It would appear that the price generally saw a cooldown when this pattern formed during the past month. As for the reason behind this trend, the answer is that more positions usually imply the presence of a higher amount of leverage in the sector. A chaotic event known as a squeeze can become more likely to occur in these circumstances. During a squeeze, a large number of positions are liquidated at once and provide fuel to the price move that caused them. The elongated price move then unleashes a cascade of further liquidations. A squeeze can be more probable to affect the side of the market that has the more leveraged positions. The previous increases in the Open Interest came alongside uptrends, so the new positions were likely long ones. This may be why the market ended up seeing a long squeeze to wipe out these excess positions. It’s possible that the latest Open Interest increase could also lead to a similar outcome for Bitcoin, since these fresh positions have also come alongside a rally. It all depends, however, on whether these positions are overleveraged or not. Unfortunately for the cryptocurrency, this requirement also seems to be fulfilled, as data for the Estimated Leverage Ratio shared by CryptoQuant author IT Tech in an X post suggests. The Estimated Leverage Ratio tells us, as its name implies, the average amount of leverage that the users on the derivatives market are opting for. Given that this metric has also spiked alongside the Open Interest increase, the new positions that have appeared could be carrying significant leverage. Related Reading: XRP Bull Flag Breakout Could Lead Price To $4, Analyst Says It now remains to be seen how Bitcoin will develop in the coming days, given the potential overheated conditions that have developed in these derivatives indicators. BTC Price At the time of writing, Bitcoin is floating around $100,400, up more than 2% over the last seven days. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
Since the Fed's easing cycle began coupled with the outcome of the U.S. election, digital assets have experienced significant developments, prompting three predictions for the months ahead, says Andy Baehr.
Data shows the Bitcoin Open Interest has reached yet another all-time high (ATH), a sign that more volatility could be coming for BTC. Bitcoin Open Interest Has Reached A Fresh High Recently As pointed out by CryptoQuant community analyst Maartunn in a new post on X, the BTC Open Interest has shot up recently. The […]
According to Bitfinex, Bitcoin (BTC) volatility is set to intensify over the next week. A “potent mix” of geopolitical and macroeconomic factors has significantly influenced the flagship crypto’s performance, with anticipation for the outcome of the US election and Q4’s close setting a potential target of $80,000 by year-end. Related Reading: Neiro Breaks Above Key Level Following 10% Weekly Drop, Is $0.0020 Next? Bitcoin Volatility About To Reach Its Peak Crypto exchange Bitfinex’s recent report shared that Bitcoin’s price could hit $80,000 by the end of the year due to a convergence of geopolitical uncertainty, macroeconomic factors, seasonality, and the increasing influence of the “Trump Trade.” The report noted that, historically, global macroeconomic trends and geopolitics events influenced BTC’s price. As a result, the largest cryptocurrency by market capitalization has seen its price movements driven by the anticipated US Presidential elections. The potential outcome of the elections, scheduled for next week, has affected Bitcoin’s performance throughout the year. Both presidential candidates have acknowledged the crypto industry, with the Republican candidate Donald Trump becoming the sector’s champion after fully embracing Bitcoin and crypto. Trump’s pro-crypto stance increased the correlation between the Republican candidate’s winning odds and Bitcoin’s trajectory. Moreover, the “Trump Trade” narrative reflects “the market’s view of how BTC will fare dependent on the outcome of the election.” Per the report, this narrative has fueled Bitcoin volatility, with the flagship crypto seeing sharp intra-week corrections before rebounding. Last week, BTC saw a 6.2% pullback toward the $65,000 support zone before reclaiming the $68,000 mark again. Bitfinex analysts consider that this pullback might be the first of several “whipsaw price movements” ahead of the elections, affecting BTC’s short-term price as speculation and volatility increase. Additionally, option premiums and estimated daily volatility for the US stock market and Bitcoin are projected to rise significantly next week. The report noted that BTC volatility will peak between November 6 and November 8, when the Election results are expected to be delivered. Reportedly, the highest implied volatility (IV) is for the November 8 strike price “reaching up to over 100 vol for strike prices over $100,000 for BTC.” BTC Poised To Hit $80,000 In Late December The report noted that Bitcoin has shown strength despite the increasing volatility. The flagship crypto “has remained resilient” and held its ground compared to the September lows, surging around 30% from last month’s drop. Additionally, BTC closed September, which has historically been a challenging month for the cryptocurrency, with a 7.29% increase, the highest closing for the month on record. The crypto exchange’s report predicted that October’s close could be “less impressive” due to the volatility. Nonetheless, Bitfinex analysts suggested that Q4’s historically bullish seasonality will still favor a positive rally for BTC. Market positioning shows that end-of-year options have seen a considerable rise in call open interest over the last few weeks. Related Reading: Bitcoin Hash Ribbons Flash ‘Buy’ Signal: Analysts See New Highs On The Horizon BTC is expected to continue experiencing higher-than-average volatility and potentially see deep corrections in the coming days. But the market seems poised for a post-election surge above March’s $73,666 all-time high (ATH). Lastly, call options with a December 27 expiry and an $80,000 strike price have seen a steady build-up, suggesting that this target could be in reach by year-end. As of this writing, BTC is trading at $71,197, a $3.4% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com
Bitcoin has shown bullish momentum during the past day, but an analyst has pointed out how the asset may be in a high-risk zone now due to the Open Interest trend. Bitcoin Open Interest Has Seen A Rapid Increase Recently As explained by CryptoQuant community manager Maartunn in a new post on X, the Bitcoin Open Interest has just surged to high levels. The “Open Interest” is an indicator that keeps track of the total amount of BTC-related positions currently open on all derivatives exchanges. Related Reading: Shiba Inu Rallies 34%, But Will FOMO End The Rally? When the value of this metric rises, it means the investors are opening up fresh positions on the derivatives market right now. As the overall leverage in the sector increases when this trend occurs, it can lead to higher asset price volatility. On the other hand, the indicator heading down suggests the derivatives contract holders are either closing up positions of their own volition or getting forcibly liquidated by their platform. This kind of trend can lead to more stability for BTC. Now, here is a chart that shows the trend in the Bitcoin Open Interest over the past year: As displayed in the above graph, the Bitcoin Open Interest had cooled off to relatively low levels earlier in the month as the asset’s price crashed. With the recovery in the coin, however, the indicator has been noting growth again. The indicator is now high, potentially implying the market has become overleveraged. As mentioned earlier, a high metric value can lead to more volatility for BTC. The reason behind this is that mass liquidation events can become more probable to occur at these levels, making the price act more volatile. On paper, the volatility emerging from an Open Interest increase can take the coin in either direction, but BTC has shown a consistent pattern in the past year. As the analyst has highlighted in the chart, the indicator entering into the same zone as now has generally turned out to be bearish for Bitcoin in this window. Related Reading: Render (RENDER) Shows 23% Surge As Sharks & Whales Continue To Buy In these instances, the Open Interest surge had occurred alongside price surges, indicating that long positions had been piling up. The latest growth in the indicator has also naturally come similarly. “We’re in a high-risk zone, and in my opinion, it’s not the best time for fresh long positions,” notes Maartunn. It remains to be seen how Bitcoin develops in the coming days and if it will hit the top, just like it did during those other instances. BTC Price Following the rally in the past day, Bitcoin has managed to find a break above the $66,000 level for the first time in almost two months Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
A key Bitcoin trading indicator has hit its “tightest point” in a year. The last time it happened, Bitcoin pumped 20% in four months.
Data shows the Bitcoin derivatives Open Interest has shot up to a new all-time high (ATH) recently. Here’s what this could mean for the asset’s price. Bitcoin Open Interest Has Registered A Steep Rise Recently In a post on X, CryptoQuant Netherlands community manager Maartunn has discussed about the latest trend in the Open Interest […]