Big Bitcoin (BTC) Move Almost Certain, Futures Data Indicates

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In a move that indi­cates traders are seek­ing pro­tec­tion from risks, there is a huge Bit­coin futures activ­i­ty cur­rent­ly. This is under­stand­able in the cur­rent sce­nario as the volatil­i­ty is quite high in the macro scene. How­ev­er, it appears that there is a height­ened sense of pro­tec­tion from poten­tial risks from the cryp­to mar­ket. Mean­while, Bit­coin (BTC) price con­tin­ues to be stag­nant around the $19,000 range despite a bear mar­ket situation.

Bitcoin Futures Open Interest Very High

The Bit­coin futures open inter­est is cur­rent­ly near­by its high­est lev­el. This means traders are extreme­ly wor­ried about their posi­tions and hence want to secure assets against poten­tial risks. Accord­ing to cryp­to influ­encer Satoshi Stack­er, the high open inter­est means peo­ple are prepar­ing for a big Bit­coin move. This is despite very low vol­ume of liquidations.

“Futures open inter­est is almost at its high­est lev­el. Open inter­est (OI) is the total num­ber of futures con­tracts mar­ket par­tic­i­pants hold at the end of the trad­ing day. It means peo­ple are prepar­ing for a big Bit­coin move!”

Long Term Holders Liquidating

Mean­while, BTC price remains to be at a stand­still between the $19,000 to $20,000 range. As of writ­ing, BTC price stands at $19,231, up 1.49% in the last 24 hours, accord­ing to price track­ing plat­form Coin­Mar­ket­Cap. Mean­while, the long term hold­ers have in recent times chose to liq­ui­date cryp­to assets. Accord­ing to Cryp­to Quant, the short term hold­ers have stayed strong with their posi­tions since June. How­ev­er, it is the long term hold­ers who have been bring­ing price down.

On the oth­er side, min­er prof­itabil­i­ty is decreas­ing as the dif­fi­cul­ty is high­er because of the increased hashrate. In cryp­tocur­ren­cies, hashrate is the total com­pu­ta­tion­al pow­er that is used by cryp­tocur­ren­cies like Bit­coin to mine and process trans­ac­tions. Cur­rent­ly, the Bit­coin hashrate is at its all time high, mak­ing it more dif­fi­cult dur­ing the bear mar­ket.

Anvesh reports major devel­op­ments around cryp­to adop­tion and trad­ing oppor­tu­ni­ties. Hav­ing been asso­ci­at­ed with the indus­try since 2016, he is now a strong advo­cate of decen­tral­ized tech­nolo­gies. Anvesh is cur­rent­ly based in India. Fol­low Anvesh on Twit­ter at @AnveshReddyBTC and reach him out at [email pro­tect­ed]

The pre­sent­ed con­tent may include the per­son­al opin­ion of the author and is sub­ject to mar­ket con­di­tion. Do your mar­ket research before invest­ing in cryp­tocur­ren­cies. The author or the pub­li­ca­tion does not hold any respon­si­bil­i­ty for your per­son­al finan­cial loss.



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