Bitcoiners should be wary of final dip ‘before another leg up’ — Analyst

As a seasoned researcher with over two decades of experience in financial markets, I have learned to never underestimate the unpredictability of Bitcoin’s price action. The recent surge beyond $68,000 has certainly piqued my interest, but it also serves as a stark reminder that cryptocurrencies can be as volatile as a rollercoaster ride on a windy day.


The surge of Bitcoin (BTC) past $68,000 has sparked optimism among traders that this could be the rally pushing it towards revisiting its record high of $73,679, yet not every analyst shares this belief in a seamless ascent.

According to Shubh Varma, CEO of Hyblock Capital, it might be wise to anticipate one more downturn in the market before it tries to advance further, as suggested in his October 16th report reviewed by CryptoMoon.

Bitcoiners should be wary of final dip 'before another leg up' — Analyst

According to Varma, Binance’s data shows that only about 40% of their retail traders currently have a long position in Bitcoin, meaning they’re buying Bitcoin in anticipation that its value will increase.

Varma suggested that this might signal a possible change, but if there’s a massive influx of retail traders buying positions, it could instead point towards a bullish trend turning bearish.

Additionally, Varma emphasized that the Open Interest of Bitcoin (OI), representing the outstanding derivative contracts yet to be settled, has surpassed its previous high resistance point. This could potentially trigger a correction aimed at liquidating long positions.

“A price dip, followed by a decline in OI, could confirm the correction.”

On October 16th, the Open Interest (OI) of Bitcoin reached an unprecedented height of $39.36 billion, surpassing its previous year-to-date and 2024 peak of $38.8 billion set on April 1st, as reported by Coinglass data.

Bitcoiners should be wary of final dip 'before another leg up' — Analyst

On the other hand, not every analyst is convinced that an increase in Open Interest automatically signals a market correction.

Crypto investor Lark Davis believes it may signal a “massive rally ahead.” 

According to Davis’s post on October 15, this indicates that more interest and funds are beginning to enter the cryptocurrency market. Such surges in attention usually predict a substantial change in prices in the near future.

Veteran trader Peter Brandt suggested that Bitcoin’s price could really go either way.

In a post on October 16, Brandt stated that the current price of Bitcoin seems to be at a critical point. Will Bitcoin break through this level or will it encounter resistance and possibly experience a setback?

Certain analysts are anticipating that the price of Bitcoin might fall to where it was in February, as they view this potential decrease as a prime chance for purchasing.

According to Markus Thielen, head of research at 10x Research, we should strive to enter the next bull market when Bitcoin’s price drops close to the lower 40,000 range.

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2024-10-16 21:07