Bitcoin Slams Metrics ATHs After Cracking $65K, Bulls Ready For More Profits?
October 21 2021 - 5:37PM
NEWSBTC
Bitcoin has been rejected in the high area around its current
levels and trends to the downside in the daily chart. At press
time, BTC’s price has slide back into early week levels trading at
$62,668 with a 5.1% loss in the daily chart. The bullish sentiment
remains as Bitcoin has been able to retain its profits in higher
timeframes. The benchmark crypto smashed its previous all-time high
at $65,000 and roared its way up to the $68,000. Related Reading
| Lucky Buyers Possibly Bag $8K Bitcoin During Early Morning
Flash Crash Analyst John Wick believes Bitcoin could follow a
similar trajectory as in 2017. As seen below, BTC performance has
been imitating the price action at that time with a similar ATH
breakout and continuation of the bullish trend. On this rally,
Bitcoin has managed to break several all-time highs in its
indicators. The upwards trend has been propelled by the launch of a
BTC-link ETF in the United States. This investment product tracks
the price of Chicago Mercantile Exchange (CME) futures contracts.
Thus, many traders are looking into Bitcoin’s Open Interest has it
made its way up with the price of the underlying asset. The BTC
Futures Open Interest OI stands at $5.75 billion in the CME,
according to data from Skew. The exchange now traders more
contracts that Binance, FTX, Bybit, and other major exchanges most
likely due to the impact of the Bitcoin ETF. Related Reading
| Bitcoin New All-Time Cleared, $100,000 Straight Ahead?
Bitcoin At Risk Of Further Downside Or Heating Up For New ATH
Further data provided by CryptoQuant point to a heating up in the
futures market with the leverage ratio increasing to September
levels. Funding rates are going positive, as traders expect more
gains and short-term investors take leverage Bitcoin positions. The
Bitcoin Option Open Interest follows a similar trend that the
futures market, Delphi Digital noted. The OI in this sector also
reached an all-time high, the firm said the following on the
increase interest on this market: This was expected given BTC’s new
all-time high and futures markets hitting record open interest
levels too. Most activity is centered around short to mid-term call
purchases. In the short term, Bitcoin could continue its rally as
historical data suggest. Some analyst claims BTC’s price tends to
return to discovery mode a few days after a successful push into
new highs. Related Reading | Despite New ATH, Bitcoin Exchange
Reserves Continue To Decline However, as the futures market runs
hot, the bulls could face hurdles. In the past, whenever too much
leverage enters the market, Bitcoin tends to correct to shake out
short-term investors. Only time will tell if history repeats.
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