Key points:
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Rising spot and futures volumes show traders returning to the crypto market.
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Traders are positioning for the upside, but the charts hint that swing traders will sell intra-day rally tops.
Crypto market price action was as volatile on Tuesday as Bitcoin (BTC) hit a daily high at $114,000, and ether (Eth) managed a brief push to $4,110. Solana’s Sol (Sol) also tried to move above the $ 200 level with a quick rally to $ 198. The breakout rally, at least in the case of Bitcoin, is in line with the increase in BTC open interest and suggests that traders are back in the market after the devastating October 10 sell, which saw $ 20 billion in liquid futures.
Proof of Entrepreneurs join the market can be seen in data from Coinglass showing Bitcoin futures open interest rising above $32 billion from an October 11 low of $28 billion.
Hyblock analysts provided a chart showing a rally to $114,000 from $107,453, lining up with Bitcoin’s 4-hour open interest and cumulative Delta volume turning positive. The breakout rally was also accompanied by a surge in the BTC funding rate, suggesting that the move was driven by futures markets.
Analysts say that as the price of Bitcoin re-establishes itself in a post-sell-off range, traders will begin to target the largest liquidity zones, a dynamic that is playing out today as the price of BTC absorbs the topside liquidity in the $114,000 to $115,000 range.
Related: Price predictions 10/20: SPX, DXY, BTC, ETH, BNB, XRP, SOL, DOGE, ADA, Hype
While the data suggests that traders are starting to become more comfortable with increasing risk, cointelegraph technical analyst Rakesh Upadhyay said, “Sellers are expected to continue to close defend $ 107,000 Support.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should do their own research when making decisions.
