Bitcoin Faces Volatility Rise as Futures Market Shows Signs of Overheating
The bitcoin perpetual futures "funding rate" has shot up, suggesting the market may be overleveraged to the bullish side.
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Data shows the Bitcoin futures market is starting to overheat again, which could lead to higher asset price volatility. Bitcoin Open Interest Has Been Climbing Recently As an analyst in a CryptoQuant Quicktake post explained, the open interest has seen some rise during the past month. The “open interest” is an indicator measuring the total […]
The price of Bitcoin abruptly dropped over 3% in under an hour after surging to $13,350, but its high time frame log charts remain highly optimistic. Three factors likely triggered a quick decline in the price of Bitcoin (BTC) on Oct. 25. First, traders pinpoint the $13,300 to $13,500 area as a major resistance range. Second, futures and options markets are neutralizing. Third, weekend trading is seemingly amplifying volatility.The $13,300-$13,500 range is a key resistance area for Bitcoin in the short termBefore the sudden price drop occurred, BTC soared from $13,127 to $13,350. The....
Bitcoin is rallying as buyers in the U.S. continue to drive the price up, but signs of overheating are emerging in Asia. Bitcoin (BTC) is continuing to rise to new heights above $35,000 on Wednesday as U.S. buyers on Coinbase further drive up the price. But the BTC futures market’s funding rate is also surging alongside futures open interest.The combination of a high funding rate, whales in Asia selling and a record-high futures market open interest raises the chances of a short-term correction.BTC/USDT daily candles chart (Binance). Source: TradingView.comWhat’s more likely, a correction....
On-chain data shows Bitcoin futures open interest has jumped up more than $1.5 billion in just a few hours as the crypto’s price breaks past $44k again. Bitcoin Futures Open Interest Adds More Than $1.5 Billion Within A Few Hours As pointed out by an analyst in a CryptoQuant post, the BTC open interest has shot up over the past day as the coin’s price has observed a surge. The “open interest” is an indicator that measures the total amount of Bitcoin futures contracts currently open on all derivatives exchanges. When the value of this metric is rising, it means more....
The open interest on bearish put options has risen to $2.52 billion as traders look for protection against a BTC price drop to the $40,000 to $50,000 range. Bitcoin (BTC) has been trying to break the $60,000 resistance for the past 23 days. Generally, investors don’t seem too worried about this as they consider it a healthy consolidation period, and even recent analysis from JPMorgan Chase estimates that BTC price will reach $130,000. Even as most investors expect Bitcoin price to rise above $100,000, derivatives data shows $2.52 billion worth of ultra-bearish options from the $40,000 to....