Essential Insights:
Increasing spot and futures volumes indicate traders are re-entering the crypto market.
Traders are setting up for potential gains, but indicators suggest swing traders may sell at intra-day rally peaks.
Price movements in the crypto market became erratic on Tuesday, with Bitcoin (BTC) reaching a daily peak of $114,000, while Ether (ETH) made a brief surge to $4,110. Solana’s SOL also tried to surpass the $200 mark, momentarily rallying to $198. These breakout moves, particularly for Bitcoin, correspond with a rise in BTC’s open interest, implying that traders are returning following the significant sell-off on Oct. 10, which resulted in $20 billion in futures liquidations.
Evidence of traders returning can be observed in CoinGlass data, which reveals Bitcoin futures open interest climbing above $32 billion from an Oct. 11 low of $28 billion.
Hyblock analysts presented a chart highlighting the rise to $114,000 from $107,453, coinciding with Bitcoin’s 4-hour anchored open interest and positive cumulative volume delta. The bullish rally was further supported by an increase in BTC’s funding rate, indicating that futures markets were a driving factor.
According to the analysts, as Bitcoin prices stabilize in a post-sell-off range, traders will begin to focus on the largest liquidity areas, which was evident today as BTC prices targeted topside liquidity between $114,000 and $115,000.
Related: Price forecasts 10/20: SPX, DXY, BTC, ETH, BNB, XRP, SOL, DOGE, ADA, HYPE
While data shows traders are becoming more willing to take on risk, Cointelegraph technical analyst Rakesh Upadhyay stated, “sellers are likely to continue closing profitable positions at the high points of intra-day ranges,” with bulls expected to uphold support at $107,000.
This article does not provide investment advice or recommendations. All investment and trading activities carry risk, and readers should perform their own research before making decisions.
