Bitcoin Breaks $66,000, But Analyst Warns Against Fresh LongsHeres Why

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

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Solana, Ethereum Attract Traders Amid Bitcoin Open Interest Plunge

Data shows that Bitcoin (BTC) Open Interest plummeted during the latest market retrace, but Solana (SOL) and Ethereum (ETH) have been resilient. Solana & Ethereum Open Interest Has Only Seen A Mild Retrace According to data from the analytics firm Santiment, Bitcoin has seen its Open Interest plunge after the pullback in its price. The “Open Interest” here refers to a metric that keeps track of the total amount of derivatives positions related to a given asset (in USD) currently open on all exchanges. Related Reading: Bitcoin Breaks $64,000, But This Pattern Could Mean Bull Run Isnt Safe When the value of this metric goes up, investors will be opening new positions in the derivatives market right now. As new positions generally suggest a rise of total leverage in the market, the Open Interest registering this trend can lead to more volatility for the cryptocurrency’s price. On the other hand, the indicator observing a decline implies some investors are either closing up their positions of their own volition or getting forcibly liquidated by their platform. The asset tends to behave more stably once such a decrease goes through. Now, here is a chart that shows the trend in the Open Interest for three top coins in the sector, Bitcoin, Ethereum, and Solana, over the past month: As displayed in the above graph, the Bitcoin Open Interest has dropped around 7.5% in the past day. The reason behind this plunge will likely be the asset’s retrace to levels under $63,000. Interestingly, while Ethereum and Solana have registered similar price drawdowns inside this window, the Open Interest is only down around 2% for both of them. It’s possible that Bitcoin was simply the most leveraged of these assets, so the relatively small price drop was enough to cause significant liquidations. There are also some other possibilities, however. The investors may be more interested in the altcoins right now, choosing to close down BTC-related positions and opening up more positions related to alts like Solana and Ethereum. It’s hard to say whether this increased appetite for speculation around Solana and Ethereum relative to Bitcoin is a positive for the market. Still, it does set these coins up to see some action shortly. Related Reading: Bitcoin Tops & Bottoms Occur When This Metric Spikes, Analytics Firm Reveals On the topic of liquidations, data from CoinGlass has revealed the exact figures related to the Open Interest flush the cryptocurrency sector has witnessed in the last 24 hours. The table shows that $107 million in cryptocurrency derivatives contracts have found liquidation during the past day, with over $88 million of these coming from the long contract holders alone. SOL Price At the time of writing, Solana is trading around $156, up almost 7% over the past week. Featured image from Shutterstock.com, CoinGlass.com, Santiment.net, chart from TradingView.com

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Bitcoin late longs washed out as BTC price falls to $65K

Bitcoin leveraged positions increased over the past week, and a portion of these late longs have been wiped out as BTC price dropped closer to $65,000.

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Record $39.4B Bitcoin open interest suggests imminent price breakout

Open interest is often used to gauge the interest and liquidity behind an asset. In Bitcoins case, the surge in open interest could signal an imminent breakout.

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Bitcoin Relative Open Interest Lowest Since Feb, Analyst Says Hard To Be Bearish

Data shows the Bitcoin Open Interest as a percentage of its market cap has been at lows recently, a sign the derivatives side has been healthy. Bitcoin Open Interest Is Now Less Than 2% Of The Market Cap As explained by analyst James Van Straten in a new post on X, the derivatives side of the market has looked “extremely healthy” while BTC’s latest recovery has occurred. The metric of interest here is the “Open Interest,” which keeps track of the total amount of derivatives-based Bitcoin positions that are currently open on all centralized exchanges. Related Reading: XRP Forms On-Chain Signal That Led To 16% Crash Last Time When the value of this indicator goes up, it means that the investors are opening up more positions on the market right now. Generally, the total leverage in the market rises when such a trend takes place, so the price of the asset could end up turning more volatile following it. On the other hand, a decline in the metric suggests users are either closing up their positions of their own volition or getting forcibly liquidated by their platform. The cryptocurrency may behave in a more stable manner following such a decrease. Now, here here is a chart that shows the trend in the Bitcoin Open Interest over the past few years: The value of the metric seems to have been going down in recent days | Source: @jvs_btc on X In the graph, the Open Interest is displayed as a percentage of the asset’s market cap (that is, the total valuation of the entire BTC circulating supply at the current spot price). It would appear that the indicator has registered a drawdown recently and has slipped under the 2% mark. This would suggest that the positions on the derivatives market now make up for less than 2% of the market cap. From the chart, it’s visible that the metric had earlier spiked to a high as the coin’s rally towards a new all-time high had taken place. Interestingly, the market cap was rapidly going up in this rally, but this ratio was still trending up, implying that speculation had been growing at a rate faster than the price. This may have been a sign that the derivatives side was starting to become overheated. In the drawdown that had followed the price top, the investors had started getting liquidated, leading to the ratio registering a decline. Related Reading: Crypto Analyst Says Cardano Ready For A Parabolic Bull Run, Heres Why The most recent price drop had helped reset the market further, bringing the ratio down to levels not seen since February. Bitcoin has been mounting a recovery effort in the past few days, but so far, the derivatives market has remained cool. “Hard to be bearish here,” says the analyst. It now remains to be seen if the health of the market would continue to look optimistic in the coming days, thus potentially allowing for the recovery to go a step further. BTC Price Bitcoin had returned back above $65,500 earlier, but the asset has since seen a small pullback as it’s now down to $64,100. Looks like the price of the asset has been heading up over the last few days | Source: BTCUSD on TradingView Featured image from André François McKenzie on Unsplash.com, Glassnode.com, chart from TradingView.com

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Is The Bitcoin Open Interest Too High Or Can The BTC Price Still Rally?

The Bitcoin open interest has remained on the high side despite the price declines, suggesting that interest in the leading cryptocurrency by market cap remains abundant. This interest is no doubt a good thing for the crypto market, especially in the long-term. But looking back at previous trends involving the Bitcoin open interest, it is concerning that the value is still so high and this could hinder a recovery for the Bitcoin price from here. Bitcoin Open Interest Still Above $56 Billion Data from the Coinglass website shows that the Bitcoin open interest is still quite high and not far off from its November 2024 highs after the BTC price hit a new peak above $109,000. This consistently high open interest signifies traders still taking considerable positions in the digital asset despite its price falling over 20% since then, something that could be a hindrance to recovery. Related Reading: Analyst Who Called Dogecoin Price Rally In 2024 Predicts 300% Rally In April The total Bitcoin open interest is currently sitting at $56.17 billion, falling approximately 22% from its all-time high of $71.85 billion. This shows a close correlation between how much the price has fallen compared to the open interest. However, the open interest remaining this high could have some negative implications for the BTC price and the crypto market by extension. For example, looking at the chart above, it is obvious that Bitcoin has seen its largest moves upward when the open interest has been low. This suggests that the lack of market pressure gives bulls the space to push the price upward. Hence, with the open interest still so high, it could be much harder to push the price higher. Given this, the BTC price could see further decline before there is more recovery from here. BTC Price Crash Below $70,000 Imminent? Besides the Bitcoin open interest remaining high, a crypto analyst has also given reasons why the BTC price could see a crash from here. The first factor given is the fake bullish divergence. According to the analysis, the RSI may be showing a bullish divergence but the price action isnt following it. Hence, this could lead to a bull trap, pulling traders into losses as the price crashes. Related Reading: Is The XRP Price Mirroring Bitcoins Macro Action? Analyst Maps Out How It Could Get To $71 Another factor given is the fact that the Bitcoin price has broken a trendline support after falling to the low $80,000s. This suggests that bullish momentum is weakening and the recent recovery might not hold. Given the factors listed above, the crypto analyst expects the Bitcoin price to fall another 20% from here. The target is placed at $69,149, which is an all-time high from 2021. This level coincides with the intersection of the mid-channel support line and horizontal price structure, the analyst explains. Featured image from Dall.E, chart from TradingView.com

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Bitcoin Resets With 14% DeleveragingHeres What Past Events Led To

Data shows the Bitcoin futures market has seen a massive deleveraging event recently. Here’s what this reset could mean for BTC, based on past trends. Bitcoin Open Interest Has Gone Through A Crash Recently As pointed out by an analyst in a CryptoQuant Quicktake post, the BTC Open Interest has seen a retest recently. The “Open Interest” refers to an indicator that keeps track of the total amount of futures positions related to Bitcoin that are currently open on all derivatives exchanges. Related Reading: Is Bitcoin Peak In? This Data Suggests Otherwise, Analytics Firm Says When the value of this metric rises, it means the investors are opening up more positions on the market. Generally, the total leverage present in the sector goes up when this happens, so this kind of trend can lead to more volatility for the asset. On the other hand, the indicator going down implies the futures users are closing up positions or getting forcibly liquidated by their platform. As leverage decreases following such a trend, the market can act in a more stable manner. Now, here is the chart shared by the analyst, that shows the trend in the Bitcoin Open Interest, as well as its 90-day percentage change, over the last few years: As displayed in the above graph, the Bitcoin Open Interest shot up to a new all-time high (ATH) of $33.6 billion back in January. Interestingly, this peak in the indicator coincided with the ATH in the price itself. As mentioned before, a rise in the Open Interest can lead to volatility for the cryptocurrency. The reason behind this lies in the fact that a mass liquidation event, popularly known as a squeeze, can become more probable to occur when the market is overleveraged. In such an event, a sharp swing in the price triggers a large amount of simultaneous liquidations, which end up acting as fuel for the move itself, thus elongating its length. This unleashes a cascade of further liquidations. The volatility emerging out of an increase in the Open Interest can, in theory, take Bitcoin in either direction. During the earlier bull rally, the Open Interest increase was accompanied by bullish momentum. From the chart, it’s visible, however, that the indicator reached a turning point around the time of the aforementioned peak. As bearish momentum took over Bitcoin following the ATH, it was now the turn of the bulls to get liquidated. The massive long squeezes that the price legs down induced helped to further the price decline, explaining its sharpness. Related Reading: Dogecoin Can Still Go Parabolic If This Support Holds, Analyst Says Today, the Open Interest is down to just $23.1 billion, with the indicator’s 90-day change sitting at a notable low of -14%. In the chart, the quant has highlighted the previous deleveraging events where the metric plummeted in a similar manner. “Looking at historical trends, each past deleveraging like this has provided good opportunities for the short to medium term,” notes the analyst. It now remains to be seen whether this cooldown in the futures market will be enough for Bitcoin to see a rebound or not. BTC Price At the time of writing, Bitcoin is trading at around $83,500, up 1% in the last 24 hours. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Brace For Impact? Bitcoin Open Interest RSI Forms Bearish Divergence

On-chain data shows the Bitcoin open interest RSI is currently forming a pattern that can lead to a short-term correction in the asset’s value. Bitcoin Open Interest 14-Day RSI Has Been Climbing Up Recently As pointed out by an analyst in a CryptoQuant post, a short-term bearish correction might soon take place for BTC. The “open interest” is an indicator that measures the total amount of Bitcoin futures contracts currently open on derivative exchanges. The metric takes into account both long and short contracts. When the value of this metric goes up, it means investors are opening more contracts on derivative exchanges right now. Such a trend could result in higher volatility for the crypto’s price as it implies leverage is increasing in the market. On the other hand, decreasing values suggest holders are getting liquidated or are closing down their futures contracts currently. Naturally, this could lead to a more stable price of BTC due to the lesser leverage. Related Reading: Litecoin Whale Withdraws $32M In LTC From Binance, Good Sign For Rally? Now, the relevant metric in the context of the current discussion isn’t the open interest itself, but its 14-day RSI. The Relative Strength Index (RSI) is a momentum oscillator that keeps track of the speed and direction of changes in any metric’s value over a specified period. The below chart shows the trend in the 14-day RSI of the Bitcoin open interest over the past year: The value of the metric seems to have seen some rise in recent days | Source: CryptoQuant As you can see in the above graph, the quant has highlighted the relevant regions of the trend for the Bitcoin open interest RSI (14). It would appear that whenever the RSI has risen while the BTC price has been moving sideways or downwards, a bearish divergence has formed for the crypto, and its price has undergone a correction. Related Reading: This Needs To Happen For Bitcoin And Ethereum To See A Bullish 2023 There have been other instances of a rising open interest RSI in the past year, but all those were accompanied by a rise in the price itself (and not consolidation or decline) so the same pattern never applied to them. Recently, however, the metric has been once again surging, and this time the price has been moving sideways at the same time, which means the bearish divergence as those earlier instances is now forming. If the trend from the previous occurrences indeed repeats this time as well, then Bitcoin could soon see another short-term correction in its price. BTC Price At the time of writing, Bitcoin’s price floats around $16,800, up 1% in the last week. Looks like the value of the crypto has enjoyed some uptrend in the last few days | Source: BTCUSD on TradingView Featured image from Becca on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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Bitcoin Open Interest Crashes By $4.5 Billion In One Weekend, Spells Doom For Bulls

Bitcoin open interest crashed by billions in one weekend, painting a bearish outlook for the flagship crypto and spells doom for BTC bulls. Despite this setback, crypto analysts have provided some optimism with their analysis, which hints at a bullish reversal soon enough.  Bitcoins Open Interest Crashes By $4.5 Billion Over The Weekend Coinglass data shows that Bitcoins open interest crashed by $4.5 billion over the weekend, dropping from $65 billion to $61.5 billion. This came following the liquidations that occurred due to the BTC price crash. Further data from Coinglass shows that over $2 billion has been wiped out from the Bitcoin market in the last 24 hours.  Related Reading: Bitcoin Traders Turn Bearish Despite Price Recovery Above $97,000, Here Are The Numbers Bitcoin bulls took the most hit, as $1.88 billion in long positions was liquidated during this period, leading to a crash in BTCs open interest. This paints a bearish outlook for the flagship crypto and puts the bulls in danger as the bears look to be firmly in control. For context, Bitcoin dropped from above $100,000 to as low as $92,000 over the weekend.  This Bitcoin price crash occurred after US President Donald Trump announced a 25% tariff on imports from Mexico and Canada and a 10% tariff on goods from China. Mexico and Canada have retaliated by imposing tariffs on goods from the US, while China has also hinted about imposing a tariff on US goods.  Bitcoins open interest looks unlikely to recover in the short term as market participants could choose to stay out of the market due to economic uncertainty. This occurrence spells doom for Bitcoin bulls as the flagship crypto could drop lower if there are no buyers to defend BTC at these levels.  Some Positive For Bitcoin Amid Open Interest Crash  In an X post, crypto analyst Ali Martinez revealed that 65.75% of Binance traders with open Bitcoin futures positions are betting on the upside. This is bullish for the BTC price as these traders have a track record of being right most of the time. As such, the flagship crypto could rebound from its current price level.  In an X post, crypto analyst Titan of Crypto stated that the broader trend for the Bitcoin price is still upward. This came as he revealed that BTC is establishing a new range between $104,400 and $93,600. The crypto analyst remarked that the short-term direction remains uncertain until this range breaks. However, in the long term, Titan of Crypto is confident that the broader trend is still upward.  Related Reading: Bitcoin Price In Trouble? Bearish Divergence That Led To Market Crash Last Cycle Returns Meanwhile, renowned author and finance expert Robert Kiyosaki suggested that this wasnt a time to panic as this was an opportunity to buy Bitcoin on sale before it rallies further to the upside.  At the time of writing, the Bitcoin price is trading at around $94,000, down over 6% in the last 24 hours, according to data from CoinMarketCap. Featured image from iStock, chart from Tradingview.com

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Bitcoin Open Interest Reaches $69,000 ATH Levels, What This Means For Price

The Bitcoin open interest has been on the rise over the last few weeks as the price has climbed continuously. This sustained rise in the open interest is a reflection of the heightened interest in the cryptocurrency since the United States Securities and Exchange Commission (SEC) approved Spot Bitcoin ETFs for trading. The BTC open interest has now climbed to historical levels, reaching 2021 all-time high levels. Bitcoin Open Interest At 2021 Levels According to data from Coinglass, the Bitcoin open interest has risen to more than $24 billion. This growth represents around a 50% jump in the open interest since the year 2024 began. But more importantly, the open interest has risen to levels not seen since 2021. Related Reading: 4 Surprising Insights From Coinbases Earnings, COIN Sees Bullish Surge Looking at the open interest chart, the last time that the Bitcoin OI was this high was back in November 2021, when the cryptocurrency reached its all-time high price of $69,000. This rise in the OI has been consistent across crypto exchanges, with CME, Binance, and ByBit leading the charge and commanding more than 50% of the open interest. Source: Coinglass The continuous rise has also come with a rise in the greed levels among crypto investors. Currently, the Crypto Fear & Greed Index is sitting firmly in Greed, suggesting that crypto investors are in a place where they are willing to take more risks than usual. Implications For The BTC Price With the Bitcoin open interest this high, it could end up being negative for the BTC price. This is because past performances where the open interest has risen so rapidly have often ended in a market crash. The same was the case in 2021 when the Bitcoin OI had set its previous record. Related Reading: $400 XRP Price Point: Analyst Breaks Down The Future Surge Date In 2021, when the BTC price crossed $69,000 and the open interest crossed $22 billion, the euphoria was incredibly high as it is now. However, this would be short-lived, with a market crash happening shortly after. The BTC price would eventually go from $69,000 to $46,000 by December, dropping by almost 40% in the space of one month. If this same trend were to repeat itself in the current trend, then there could be a massive crash in the cards for Bitcoin. A similar decline would see Bitcoin fall back toward $41,000, which would wipe out the gains of the last few weeks. However, there are different factors at play in the current market, such as Spot Bitcoin ETF issuers seeing massive interest in their exchange-traded products. Just last week, inflows into Spot BTC ETFs reached a new record of $2.2 billion. So if these large institutions continue buying BTC to meet the demand of their customers, then the BTC price could continue to rally. BTC bulls push price above $52,300 | Source: BTCUSD on Tradingview.com Featured image from Barron’s, chart from Tradingview.com

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Bitcoin Has Broken This Open Interest Pattern, Quant Explains

A quant has explained how a pattern in the Bitcoin open interest that held during the past month now appears to be broken. Bitcoin Open Interest Is Now Moving Against The Price As explained by an analyst in a CryptoQuant post, the BTC price had earlier been rising along with increases in the open interest. [...]

The post Bitcoin Has Broken This Open Interest Pattern, Quant Explains appeared first on Crypto Breaking News.

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Bitcoin Open Interest Dropped Significantly Investors Cautions Amid US Election Week?

Bitcoin has faced significant volatility and uncertainty as it approaches a pivotal week, with tomorrows U.S. election expected to play a key role in determining its price action. BTC is holding steady above the $68,000 mark, a critical level that has shifted from resistance to a solid demand zone. Analysts see this level as essential [...]

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Bitcoin Open Interest Hits ATH As BTC Nears $100K What To Expect?

Bitcoin has shattered records again, reaching a new all-time high of $97,903 just hours ago. The cryptocurrency market is exciting as Bitcoin leads the charge, delivering explosive gains that have fueled widespread bullish sentiment. Investors and traders alike speculate this rally is far from over, with Bitcoin edging closer to the monumental $100,000 mark. Related Reading: Ethereum Consolidation Continues Charts Signal Potential Breakout Key data from Coinglass reveals another significant milestone: Bitcoins Open Interest has reached an all-time high. This surge in Open Interest indicates a flood of capital entering the market, signaling heightened activity and confidence among traders. Such metrics further confirm the euphoric state of the market, where optimism reigns supreme and momentum continues to build. With Bitcoins price rallying at an unprecedented pace and market indicators hitting record levels, the stage is set for what many believe to be an almost inevitable breakout above the psychological $100,000 level. The markets focus is whether BTC can sustain its trajectory or if a temporary pullback will precede the next leg up. Either way, the spotlight remains firmly on Bitcoin as it cements its status as the leading force in this explosive bull run. Bitcoin Greed Enters The Market  Greed has gripped the Bitcoin market, with the average Fear and Greed Index hitting 76%, signaling heightened optimism among investors. This elevated level of greed suggests that market participants are buying aggressively, anticipating that Bitcoin’s price will continue its upward trajectory without significant setbacks. Such sentiment often leads to increased speculative behavior as traders look to capitalize on the ongoing rally. Critical data from Coinglass supports this narrative, revealing that Bitcoin Open Interestrepresenting the total value of outstanding derivative contractshas reached an all-time high of $62.69 billion. This unprecedented figure highlights the speculative nature of the current market, as traders use leveraged instruments like futures to amplify their potential gains. While this fuels bullish momentum, it also adds volatility, making the market susceptible to sharp moves in either direction. Interestingly, Bitcoin’s optimistic environment starkly contrasts the broader crypto market, where altcoins continue to struggle to reclaim yearly highs. While BTC leads the charge with record-breaking performance, altcoins have yet to catch up, underscoring Bitcoins dominance during this market cycle phase. Related Reading: Solana Analyst Expects A Retrace Before It Breaks ATH Targets Revealed As speculative activity and investor optimism drive Bitcoin’s price action, the market waits to see if the rally has more fuel or if a correction looms. For now, Bitcoin remains the focal point of this euphoric bull run. BTC Enters Price Discovery Again Bitcoin is trading at $97,500 after setting a fresh all-time high, continuing its explosive rally. The market leader has entered price discoverya phase often characterized by parabolic trends like the one currently driving BTC higher. Investor anticipation is growing, with the $100,000 mark only 2.5% away. This psychological milestone could act as significant resistance, potentially holding Bitcoin down for an extended period. A consolidation phase around this level would benefit the broader market, allowing altcoins to catch up and the rally to maintain stability. However, price discovery can be unpredictable. If Bitcoin fails to reach the $100,000 mark in the coming days, the market could see a pullback as bullish momentum cools. A retrace to lower demand zones, such as the $88,500 level, would provide the market with a necessary reset before the next leg upward. Related Reading: Dogecoin Breaking Out Of Falling Wedge Pattern Analyst Reveals Target Despite the possibility of a short-term correction, Bitcoins price action remains strong. Its dominance over the crypto market and the current euphoric sentiment suggest bulls are still firmly in control. As traders and investors closely monitor price movements, Bitcoins ability to push through key psychological levels will determine the next phase of this historic rally. Featured image from Dall-E, chart from TradingView

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Bitcoin Open Interest Reduced By $2.1 Billion In 24 Hours Time For Spot To Push The Price?

Bitcoin is currently trading above $69,000, following a 6% pullback from its recent peak at $73,600. The recent surge in open interest has been a key factor in driving BTCs price action, with open interest reaching $23.9 billion on October 30, a significant uptick that indicated high market engagement.  However, in the past 24 hours, data from CryptoQuant reveals a $2.1 billion decline in open interest, signaling a shift as BTCs price retraces to lower levels. Related Reading: Dogwifhat (WIF) Prepares For A Bullish Breakout Analyst Sets $3 Target This cooling off has led analysts to closely watch for renewed buying interest from spot investors, which could provide the fuel needed for BTC to rally once more. With Bitcoin hovering near key support levels, a push from spot investors could potentially set the stage for a strong rebound.  The next few days will be pivotal as traders and analysts alike await fresh inflows that may reinforce BTCs resilience and prepare it for another test of its all-time highs. As BTC holds around $69,000, market sentiment remains cautiously optimistic, with eyes on spot activity to gauge whether this retracement phase could soon give way to renewed momentum. Bitcoin Hype Slowing Down? Bitcoin has recently captured market excitement, coming within 1% of its March all-time high and fueling speculation of a massive breakout. However, this momentum appears to be losing steam, as BTC has yet to establish a new high, and open interesta measure of the total value of futures contractshas begun to shrink.  Renowned analyst Axel Adler recently shared key data on X, revealing a $2.1 billion reduction in open interest within the last 24 hours. This decline, from a peak of $23.9 billion to $21.8 billion, indicates that speculative futures trading alone may not be sufficient to push Bitcoin to new heights. Adler suggests that for Bitcoin to break past this barrier, spot investorsthe market participants who buy BTC directly rather than through derivativesmust step in to drive demand. With futures markets retreating, fresh buying from spot investors could be the needed catalyst to take Bitcoin above its all-time high and set the stage for further gains. Related Reading: Ethereum Holds Key Support To Set A $6,000 Target Analyst The timing is crucial, as Bitcoin is currently trading close to its historical peak, and the upcoming U.S. election on November 5 adds another layer of potential market volatility. Many market participants are eyeing the election as a potential driver of a broader market rally, with a Bitcoin bull run possibly following a political catalyst.  For now, Bitcoin hovers just below its all-time high, and while the futures market pulls back, attention shifts to spot buying as a key factor in determining whether BTC can resume its upward trajectory. As BTC holds near record levels, the next few days will be pivotal in defining its short-term direction and potential for a new bull phase.  BTC Holding Above Key Levels Bitcoin is currently trading above the critical $69,000 mark, which previously acted as strong resistance since late July. Holding this level as support is essential for bulls aiming to push BTC toward new all-time highs.  If Bitcoin manages to consolidate above $69,000, the stage could be set for a breakthrough into uncharted territory and a price discovery phase. However, should BTC retrace below this level, it would signal that the asset needs additional momentum to test and surpass its all-time high. In the event of a pullback, $66,500 stands out as the next critical support. This level would maintain Bitcoins bullish structure while providing a solid base for a potential rebound. Such a dip could attract fresh buying interest and add necessary fuel to Bitcoin’s rally, preparing the market for a renewed attempt at price discovery.  Related Reading: Dogecoin Metrics Reveal Increasing Network Activity Is DOGE Ready To Break Yearly Highs? As BTC hovers above this significant support level, traders are closely watching for signs of sustained strength or a healthy retracement to solidify the base before the next leg up. Holding above $69,000 is key, but even a temporary decline to $66,500 would keep Bitcoins broader bullish outlook intact. Featured image from Dall-E, chart from TradingView

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Bitcoin Bears Fear A Short Squeeze Above $71,000 As Open Interest Rises To $22.6B

Bitcoin is on the verge of a historic move as it pushes toward its all-time highs, surging above the $71,000 mark just yesterday. This breakout has ignited optimism among analysts, who expect further upside in the coming weeks as the US election draws neara period historically marked by heightened volatility and market shifts. Critical data from CryptoQuant indicates that Open Interest has reached $22.6 billion, with half of these positions held by bears. If Bitcoin continues to climb, this setup creates a high risk of short liquidations, potentially accelerating buying pressure as prices push above $71,000. Related Reading: If Dogecoin Breaks Above Key Resistance We Could See A 25% Rally Top Analyst As momentum builds, the next few days will determine whether BTC can sustain its uptrend or if a consolidation phase below the all-time high will continue. Investors are closely watching these price levels, as a confirmed breakout could signal new highs for Bitcoin. At the same time, a stall might suggest a need for additional consolidation before a larger move. Bitcoin Bears In Serious Trouble Bitcoin bears are now at high risk of forced liquidations as a significant level of short position liquidity hovers above the $71,000 threshold. According to top analyst and macro investor Axel Adler, this scenario could ignite a powerful rally if short positions start liquidating en masse. Creating momentum that propels BTC beyond its all-time highs. Adler shared a CryptoQuant chart on X, noting that Bitcoin Open Interest has surged to $22.6 billion, with half of these positions held by bears. In his analysis, Adler emphasizes that the current market structure is poised for a major squeeze. Theres no need to hesitate in liquidating short positions to drive the price up, Adler states, suggesting that a cascade of liquidations above $71,000 could act as a launchpad for Bitcoin, taking it into uncharted price discovery levels. This process, known as a short squeeze, occurs when overleveraged short holders are forced to close their positions, resulting in large buy orders that send prices even higher. Related Reading: Solana Bullish Pattern Holds Crypto Analyst Sets $202 Target If this scenario unfolds, Bitcoin wouldnt be the only one benefiting. As BTC leads the market, a rally past previous highs could signal a fresh cycle for the entire crypto space. Altcoins typically follow Bitcoins lead, and the spillover effect could fuel a comprehensive bull run, with new highs across multiple assets.  Investors are watching closely, as such a move could renew interest and investment in the crypto market, drawing in retail and institutional capital. With BTC on the edge of price discovery, the next few days may prove pivotal in shaping the market’s direction. BTC Testing Cruial Supply  Bitcoin is testing a supply zone at $71,200, brushing up against the last resistance level before reaching its all-time high. Bulls appear firmly in control, with price action signaling a likely breakout above this level in the coming days. Breaking and holding above the $70,000 mark remains critical. This psychologically significant level reinforces bullish sentiment, encouraging more buyers to enter the market. However, a temporary retracement to gather liquidity at lower demand levels would benefit Bitcoins uptrend. A dip toward the $69,000 level, or even down to $66,500, would still align with a bullish outlook. It could attract further interest and create a healthier base for the next rally. These areas would allow Bitcoin to gather liquidity before making a stronger push toward new highs. Related Reading: Ethereum Whale Activity Spikes To 6-Week High Smart Money Accumulation? Traders are watching, knowing that a sustained move above $71,200 could pave the way for price discovery beyond all-time highs. A successful breakout could trigger renewed momentum across the market, sparking a broader bull run as Bitcoin leads the charge. Featured image from Dall-E, chart from TradingView

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Bitcoin open interest surge past $35B raises overheating concerns

Bitcoins recent surge in open interest beyond $35 billion has analysts worried about potential signs of froth in the market.

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Market rebounds after SEC lawsuits spur brief panic

This week’s market turmoil, induced by the announcement of the U.S. Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase, appears to have been a momentary blip rather than a sustained downturn. While initial reactions saw panic selling, the market’s swift recovery reflects its robustness. The SEC’s lawsuits come from its increasingly stringent scrutiny […]

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