Bitcoin Derivatives Volume Returns to Positive After Two Days of Dominating Selling Pressure in the Market
Market analysis shows Bitcoin has a big hurdle to overcome before it can recover to previous ATH levels
Open interest surges to $400 million — Bullish momentum or bull trap?
Bitcoin buying volume has regained some ground, according to the Taker Buy/Sell Ratio on CryptoQuant. The ratio has crossed above 1 for the first time since April 17 — a sign of renewed confidence among traders as they open long positions in anticipation of a rally.
Source: Cryptoquant
This increase was also accompanied by a surge in the total value of outstanding derivative contracts (Open Interest).
Open Interest, which reflects the total value of outstanding contracts, has increased from $33.3 billion to $33.7 billion — an increase of $400 million in the past few days. This shows that many new derivative contracts have been opened, mostly by investors buying in anticipation of further increases in BTC prices.
Source: Cryptoquant
Risk – Could a sharp correction be imminent?
However, increasing Open Interest also poses the risk of sudden price declines. Historical data shows that 20%–25% declines in Open Interest have led to 7%–21% declines in Bitcoin price, creating conditions for technical corrections.
Bitcoin has only recently gained 1.96%, so any sudden drop could see it drop by as much as 20%. Bitcoin is currently forming a symmetrical triangle pattern — a potential breakout.
Source: Cryptoquant
Caution — Could a Major Correction Be in the Works?
Analysis of spot market activity shows that traders are holding onto Bitcoin, with a total of $629 million in purchases this week. This buying pressure has kept the price from falling below $100,000.
If the buying trend continues, especially over the weekend, it is expected to stimulate investors to open more long-term positions in the derivatives market, creating momentum for Bitcoin to surpass new highs.
Source: Cryptoquant
Exchange Flows Drop Sharply, Can Bitcoin Aim for $112K?
Analysis of Bitcoin inflow data into exchanges shows a major drop. After stabilizing at high levels since the beginning of the week, inflows into exchanges have hit their lowest level of the year.
This shows that investors are holding BTC, with no intention of selling in the short term. This habit usually predicts a positive long-term trend and the possibility of Bitcoin having a big bullish wave.
Bitcoin is currently trading within a symmetrical triangle pattern — a sign of an imminent breakout above the $106,141 resistance level, opening the possibility of a peak of $112,000 in the near future.
Source: TradingView
Source: https://tintucbitcoin.com/bitcoin-co-the-but-pha-cuoi-tuan/
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