As a seasoned crypto investor with a decade of experience under my belt, I’ve learned to navigate the rollercoaster ride that is the cryptocurrency market. The recent dip in Bitcoin price, while disheartening, doesn’t faze me too much.
Bitcoin (BTC) circled $67,000 on Oct. 26 after news events sent BTC price tumbling nearly 5%.
Bitcoin open interest blamed as BTC price wobbles
Information gathered from CryptoMoon Markets Pro and TradingView showed that the lowest point for Bitcoin, which was traded on Bitstamp, reached approximately $65,530 by the end of October 25th’s daily trading.
New issues of geopolitical turmoil and unverified allegations about the misuse of the largest stablecoin, Tether (USDT), have arisen.
As the former swiftly dismissed the allegations, as reported by the Wall Street Journal, the tension between Israel and Iran contributed to a growing sense of caution or risk aversion.
For Bitcoin market observers, however, there was a more important factor in recent BTC price performance: open interest (OI).
Recently, many people believe that the reason for the fall was due to an investigation concerning the USDT stablecoin in the U.S., but this assumption is actually quite misleading. Over the past few months, there have been constant narratives circulating at both high and low levels, causing individuals to make emotional decisions rather than rational ones when they should’ve been doing so,” stated account X’s Luca on X.
“In my opinion, the drop wasn’t caused by the news. The drop was caused by the high OI, which market makers are trying to flush out before they take the price higher.”
According to data from Glassnode, a firm specializing in onchain analysis, the reduction in Open Interest (OI) over a single day on October 25th was the greatest since August.
Charles Edwards, the founder of Capriole Investments, which specializes in quantitative Bitcoin and digital assets, finds it astonishing that Bitcoin continues to trade as a high-risk investment. He believes that someday, Bitcoin will behave more like Gold during market events.
“On the plus side, 10000 BTC Open Interest wiped in minutes, we are now back at the same level of OI as when Bitcoin was trading at $59K.”
According to CryptoMoon’s report, the Open Interest (OI) had earlier peaked beyond $40 billion, hinting at another potential clash between Bitcoin and the $70,000 mark.
$60,000 liquidity “flush” next?
Moving forward, I myself am expecting a potential decline that could find support around the psychologically significant level of $60,000, which I will be closely monitoring.
Looking at the Liquidation-Heatmap, it’s evident that this past week has seen repeated attempts by bulls to seize the local market low, but these efforts have consistently fallen short due to the presence of heavily leveraged positions within the exchange order book.
“Now it is happening again, with a MASSIVE pile of longs sitting just under 65K, which is also a very important support level. Lose that, and the next support range at 60K gets exposed.”
Monitoring resource CoinGlass showed bid liquidity stacked below spot price toward $61,500.
In my opinion, it seems we might experience a further drop towards 60K. Once this happens, we could potentially identify possible low points,” Luca summarized.
Read More
- DYM PREDICTION. DYM cryptocurrency
- ZK PREDICTION. ZK cryptocurrency
- CYBER PREDICTION. CYBER cryptocurrency
- JASMY PREDICTION. JASMY cryptocurrency
- POPCAT PREDICTION. POPCAT cryptocurrency
- SKEY PREDICTION. SKEY cryptocurrency
- TURBO PREDICTION. TURBO cryptocurrency
- Top gainers and losers
- BNB PREDICTION. BNB cryptocurrency
- XRP PREDICTION. XRP cryptocurrency
2024-10-26 14:52