Originally published on: October 17, 2024
Bitcoin traders are feeling the pressure as the cryptocurrency’s weekly gains of 11% have sparked concerns about a possible retracement before reaching new all-time highs. The recent volatility in Bitcoin’s price has raised alarms among traders, with some worried about a potential sharp correction.
According to a pseudonymous derivatives trader, TheKingfisher, the current trading activity around $68.4k is reminiscent of previous volatility episodes in July. The surge in Bitcoin volatility has made hedging more expensive and leverage riskier for traders. Despite this heightened volatility, traders using 50x leverage have not been liquidated yet, indicating a precarious situation in the market.
The liquidity pool in Bitcoin is expanding, leading to speculation about a potential “Darth Maul candle” exit scenario. Market experts like Michael van de Poppe believe that Bitcoin’s price may drop to around $64,130 before resuming its upward trend. The recent surge in Bitcoin Futures open interest has also raised concerns about a possible pullback to cleanse long positions.
While some analysts remain cautious about the surging open interest in Bitcoin Futures, others see it as a bullish sign for the cryptocurrency. The conflicting opinions among analysts have added to the uncertainty in the market, making it a challenging time for Bitcoin traders.
Despite the mixed signals, one thing remains clear: the cryptocurrency market is volatile and unpredictable. Traders are advised to conduct their own research and exercise caution when making investment decisions. Stay informed and stay ahead in the ever-changing world of cryptocurrencies.
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