Bitcoin Enters High-Risk Zone, Analyst Urges Caution Amid Uptober Hype
- Bitcoin rmins stgnnt round $66,000 s trdrs xrcis cution midst high Opn Intrst lvls.
- CryptoQunt nlyst wrns tht high Opn Intrst indicts incrsd risk for Bitcoin long positions.
- Ovrly optimistic socil mdi sntimnt could signl potntil pric corrctions for BTC in Octobr.
Bitcoin (BTC) hs ntrd wit-nd-s phs, trding sidwys round th $66,000 mrk sinc Fridy. Whil xcitmnt simmrs for th historiclly bullish Uptobr (Octobr), prominnt nlyst on CryptoQunt is urging cution du to concrning mrkt signls.
Mrtunn, CryptoQunt nlyst, xprssd cution in Sptmbr 28th Quicktk post, stting, Bitcoin is in high-risk zon, nd in my opinion, its not th bst tim for frsh long positions. This wrning stms from th concrningly high Opn Intrst in th BTC mrkt, currntly sitting t hfty $19.16 billion.
Opn Intrst rfrs to th totl vlu of outstnding contrcts on n sst. A substntil Opn Intrst signifis hightnd spcultiv ctivity by trdrs, oftn involving lvrgd positions. This implis mny trdrs r currntly plcing bts on Bitcoins futur pric movmnts.
Whil high Opn Intrst suggsts incrsd mrkt nggmnt, it lso xposs Bitcoin to prcrious sitution. Most trding positions r typiclly opnd with lvrg, mning suddn shift in pric cn mgnify gins or losss.
Mrtunns nlysis rvls concrning trnd. Sinc Mrch 2024, its Opn Intrst hs surpssd $18 billion six tims. Ech instnc coincidd with tmporry pric rlly followd by significnt pullbck. With Opn Intrst xcding $18 billion onc gin, mrtunn dviss trdrs to xrcis cution bfor tking long positions on Bitcoin.
Byond th risk of pric corrctions squzing out lvrgd positions, high volum of liquidtions could triggr domino ffct, driving BTCs pric down rpidly du to mssiv slling prssur. This scnrio undrscors th importnc of witing for clrr mrkt signls bfor mking invstmnt dcisions.
Bitcoins Bullish Posts Outnumber Bearish Ones
Echoing this cutious stnc, Sptmbr 29th post by Sntimnt suggsts tht ovrly optimistic sntimnt could hindr BTCs journy to nw ll-tim high. Thir nlysis rvls currnt rtio of 1.8 bullish posts to vry 1 brish post on socil mdi rgrding Bitcoin.
Historiclly, mrkts oftn xhibit countrintuitiv bhvior, whr xtrm optimism prcds pric corrction or stgntion bfor rsuming n upwrd trnd. Th currnt bullish frvor surrounding it might b sign of potntil pric pus or pullbck bfor th nxt lg up.
Additionlly, Rkt Cpitl, crypto nlyst, highlightd tht BTC hs ntrd rccumultion phs, which mns tht ftr rcnt pric rlly or incrs, th mrkt is going through priod of consolidtion. During this phs, th pric of BTC movs sidwys or fluctuts within rng without significnt upwrd or downwrd movmnts.
As of this writing, Bitcoin trds t $65,808, down 0.40% in th lst 24 hours. Dspit th short-trm dip, it mintins positiv prformnc on lrgr timfrms, with gins of 4.28% nd 11.43% obsrvd in th pst wk nd month, rspctivly. It continus to hold its position s th dominnt digitl sst, bosting mrkt cpitliztion of $1.3 billion nd mrkt dominnc of 56.5%.
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Read more: https://www.tronweekly.com/bitcoin-enters-high-risk-zone/
Text source: TronWeekly
