The analysis platform CoinGlass found that Bitcoin may have even more room to maneuver, fall while open interest risesIn a post on X, Coinglass noticed that it is unusual that Bitcoin’s open interest (OI) has continued to rise despite falling prices.
What is somewhat unusual is that open interest did not react to the price and increased.
An increase in open interest means that both long and short positions are increasing.
I think there is still room for improvement.
No financial advice.
👉https://t.co/7uAJeu6k6Y pic.twitter.com/x2yYIFaM3C
— CoinGlass (@coinglass_com) 16 August 2024
The report found that total open interest in Bitcoin futures increased over the past week. On August 16, it reached the $29 billion markalthough BTC spot prices fell 5% on August 14.
CoinGlass is optimistic about Bitcoin’s prospects despite price decline
The open interest shows the number of future Bitcoin contracts that have not yet completed or expired. Accordingly Coin jarIncreasing open interest indicates that short and long positions are increasing.
Furthermore, rising OI gives traders more leverage in the market and can increase their participation in buy or sell trades. OI rose on August 5, resulting in leverage flush outs that resulted in a 20% increase. In Bitcoin prices in less than 24 hours.
CoinGlass also reveals that Bitcoin funding rates were negative. Such negative funding rates in the derivatives market mean that the contract price is below the spot price of the asset.
Such a situation prevents traders from holding long positions, You need to focus more on short selling or selling.
Meanwhile, a significant crypto options expiry event will take place this week. According to data from Deribitapproximately 24,000 BTC contracts worth $1.4 billion expired on August 16.
However, it may not be a death sentence for crypto prices, as such events do not often strongly influence the spot crypto market. In addition, a high accumulation of over-leveraged trades exerts a greater impact when they are uncovered.
BTC is currently in the $58,000-59,000 area and is down 3% in the last 24 hours.
Analysts identify possible reasons for the collapse of the Bitcoin price and forecasts
An experienced analyst, Mags, specified that Bitcoin is a bearish cross on the daily chartIts 50 moving average (MA) fell below the 200 MA, indicating short-term weakness in the crypto market.
#Bitcoin just printed a bearish cross on the daily chart, with the 50 MA crossing below the 200 MA, indicating short-term weakness in the market.
This is the second bearish move since the low of $15,500.
The last bearish crossover occurred in September 2023, when the price… pic.twitter.com/WXAhSYsRbW
— Mags (@thescalpingpro) 15 August 2024
According to Mags, this is the second bearish cross since the low of $15,500. The last recorded bearish cross occurred in September 2023, when Bitcoin was trading at around $25,000.
Mags explained that Bitcoin price After the pullback, it moved sideways for a few weeks before a bullish crossover occurred. Another analyst, Tony Sycamorenoted that Bitcoin fell to $57,478 due to concerns that the The US government prepared the sale.
#Bitcoin is trading lower at $57,478 amid fears that the U.S. government is preparing to sell the bitcoins it seized during the Silk Road raid.
It needs to reclaim the 200-day moving average at $62,432 to stabilize and allow a test of the trend channel resistance at $70,000.
Knowing that a… pic.twitter.com/lMCYbOzXOU
— Tony Sycamore_IG (@Tony_Sycamore) 16 August 2024
Sycamore maple Claims that the US government is preparing to sell its BTC seized during the Silk Road attack. This sell-off could lead to significant price losses for Bitcoin. Therefore, BTC must 200-day MA at $62,432 should find stability and obtained a new resistance channel at around $70,000.
However, Sycamore claims that a sustained breakdown below the $53,000 – $50,000 support level would end the uptrend.
Meanwhile, another crypto analyst said: mustache, claims that Bitcoin’s current cycle reflects a pattern from 2017. In 2017, BTC performed better than it did during its dramatic rise in 2021. The analyst believes that BTC’s performance in the current cycle is just as good as it was in 2017.
This is the bull market line that no one talks about.
This has been very important since the first cycle.
This cycle looks similar in 2017.
I’m slowly starting to see a pattern:
-Rising Fast (2013)
-Healthy ascent (2017)
-Rapidly rising (2021)
-Healthy rise (2024) pic.twitter.com/bTiq5v1U6t— 𝕄𝕠𝕦𝕤𝕥𝕒𝕔ⓗ𝕖 🧲 (@el_crypto_prof) 15 August 2024
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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