Highlights:
Increased spot and futures volumes indicate traders are re-entering the crypto market.
Traders are poised for upside, but charts suggest swing traders may sell at intra-day rally peaks.
The crypto market experienced significant volatility on Tuesday, with Bitcoin (BTC) reaching a daily high of $114,000, and Ether (ETH) briefly pushing to $4,110. Solana’s SOL (SOL) also tried to surpass the $200 mark with a quick rise to $198. The breakout rallies, notably in Bitcoin’s case, correlate with BTC’s increasing open interest, suggesting that traders are making a comeback following the substantial sell-off on October 10, which resulted in $20 billion of futures liquidations.
Evidence of traders returning is reflected in CoinGlass data, revealing that Bitcoin futures open interest has climbed from $28 billion on October 11 to over $32 billion.
Hyblock analysts shared a chart illustrating the rise to $114,000 from $107,453, coinciding with Bitcoin’s 4-hour anchored open interest and positive cumulative volume delta. This breakout was also marked by an increase in BTC’s funding rate, indicating that the movement was fueled by futures markets.
Analysts noted that as Bitcoin price stabilizes within a post-sell-off range, traders will start focusing on the largest liquidity areas, a trend that unfolded today as BTC absorbed liquidity at the $114,000 to $115,000 range.
Related: Price forecasts 10/20: SPX, DXY, BTC, ETH, BNB, XRP, SOL, DOGE, ADA, HYPE
While the data implies that traders are becoming more willing to take on risk, Cointelegraph technical analyst Rakesh Upadhyay stated, “sellers are predicted to continue closing profitable positions at intra-day range peaks,” while bulls are anticipated to protect the $107,000 support level.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
