Bitcoin

James

Bitcoin’s open interest—the total number of outstanding derivative contracts that have not been settled—has surged to levels not seen in over six months. Amid these high-interest levels, market analysts <a href="https://x.com/JA_Maartun/status/1721557958016815321?s=20" target="_blank" rel="noopener nofollow">warn</a> that Bitcoin may see a 20% price correction. 
<h2 id="analysts-weigh-in-on-market-implications">Analysts Weigh In On Market Implications</h2> 
The surge in open interest has been linked to a substantial increase in derivatives market activity. Financial commentator Tedtalksmacro hinted at the <a href="https://www.newsbtc.com/news/crypto-forecast-analyst-predicts-santa-claus-squeeze/" target="_blank" rel="noopener ">potential market shifts</a>, noting a significant addition to open interest, which could indicate impending “fireworks” in the market. 
<blockquote class="twitter-tweet"> 
 Almost 10k BTC (~$350MM USD) in open interest added today. 
 Fireworks soon. 
 — tedtalksmacro (@tedtalksmacro) <a href="https://twitter.com/tedtalksmacro/status/1721843313396040188?ref_src=twsrc%5Etfw" target="_blank" rel="noopener nofollow">November 7, 2023</a>
</blockquote> 
With more than $16 billion in open interest recorded currently, according to <a href="https://www.coinglass.com/BitcoinOpenInterest" target="_blank" rel="noopener nofollow">data</a> from CoinGlass, the market is witnessing noticeable fluctuations that could spell out more significant changes in Bitcoin’s valuation. 
So far, analysts are keenly observing these fluctuations, interpreting them as signals for future market movements. James Van Straten from CryptoSlate <a href="https://cryptoslate.com/insights/record-breaking-open-interest-on-cme-shows-growing-market-activity/" target="_blank" rel="noopener nofollow">pointed out</a> the record open interest in the CME exchange, often “preferred by institutional investors.” The analyst noted: 
<blockquote> 
 The CME exchange, preferred by institutional investors, has achieved a new record in open interest, with 105,380 BTC contracts open, valued at $3.68 billion. Binance has edged past this figure with open interest of approximately 113,500 BTC. 
</blockquote> 
With Binance’s open interest slightly surpassing the CME’s figures, Van Straten suggests that this trend could indicate a growing interest in Bitcoin futures, which may reflect a “positive shift” in market sentiment or a strategic move by investors to adopt “<a href="https://www.newsbtc.com/bitcoin-news/bitcoin-on-chain-data-points-to-bullish-outlook-but-theres-a-catch/" target="_blank" rel="noopener ">protective strategies</a>.” 
The implications of this rising open interest, however, are not universally seen as positive. J. A. Maartunn from CryptoQuant cautioned that such high open interest levels have historically preceded price drawdowns of at least 20% for Bitcoin. 
This pattern, he argues, warrants “significant attention” as it could indicate an upcoming price correction.&nbsp; 
<h2 dir="ltr" id="bitcoin-latest-price-action">Bitcoin Latest Price Action</h2> 
The current trajectory of Bitcoin’s market performance has been discussed among analysts, particularly in light of the <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-price-tide-could-asic-miner-values-signal/" target="_blank" rel="noopener ">recent surge</a> in open interest. Despite this interest, Bitcoin has experienced a slight pullback from its recent growth spurt. 
At the time of writing, the cryptocurrency has seen a 1% decrease over the last day, now valued at $34,722. Meanwhile, over the last week, Bitcoin’s growth has been modest, charting a<a href="https://www.newsbtc.com/bitcoin-news/bitcoins-stellar-surge-whats-next-expert-deciphers-the-crypto-labyrinth/" target="_blank" rel="noopener "> 1.4% increase</a>, while the bi-weekly figures show a slightly 3.1% rise. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/KCnfvHGG/" alt="Bitcoin (BTC) price chart on TradingView" width="2770" height="1556"> 
 This <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-upcoming-leap-analyst-predicts-a-45500-rise/" target="_blank" rel="noopener ">corrective movement</a> in Bitcoin’s price is mirrored by a notable drop in its daily trading volume, which has fallen sharply from last week’s high of $21 billion to a current figure of just $3.8 billion within the past day. This reduction in volume may be indicative of a cooling off in trading activity. 
Featured image from Unsplash, Chart from TradingView

Bitcoin On The Brink? Analyst Predicts Soaring Open Interest May Signal 20% Price Correction

目录

NewsBTC

发布于 2023年11月8日的其他文章

Bitcoin at a Crossroads: Analyst Advocates for a Healthier Bullish Trend

Senior US Treasury Official Condemns Illicit Crypto Use: ‘Congress Needs to Act’

FTX and Alameda Transfer $350 Million in Crypto to Exchanges for Potential Sell-Off

LAST CHANCE: SelfKey iD is still FREE until November 15th!

Ripple partners with Onafriq to power digital asset-enabled cross-border payments between Africa ...

🗒 Daily Newsletter | Wednesday, November 08, 2023

订阅我们免费的电子期刊，获取每日最新加密领域动态！