Crypto analyst warns of increased BTC volatility with the traders stepping in and it can continue increasing in the short-term as futures traders pile up even more so let’s read more today in our cryptocurrency news.
Bitcoin’s price surged above $20,000 and then it is now trading below the level with the crypto charts gaining 1.4% over the past day with the on-chain crypto analyst warning of enhanced incoming volatility. The crypto market added another $50 billion in the past day as the BTC price tests the critical level of $20K which contains the highs from the 2018 cycle. At the time of writing, the price is trading below this point but it is still up at 1.4% on the day. Analysts are warning that this volatility will increase as the open interest builds up and the futures traders are stepping in. To analyze these issues of which direction the price could end up going, the open interest in conjunction with the funding rates is a good indicator but this time, it seems the funding rates are neutral.
This means that the long and short traders are almost in balance with the leverage added to both sides will increase volatility in the near term. Speaking of the leverage, it’s worth noting that the past day saw $180 million worth if liquidated positions and 75% of which were shorts.
As recently reported, Bitcoin continued to trade sideways but was stopped before coming close to $20,000 and the altcoins were in a similar position with a few notable movements in either direction. Last week we saw the end of the horrific second quarter for Bitcoin which delivered more volatility than the past few days. The cryptocurrency was crashing hard and dropped to a 10-day low of below $18,800. the bulls took control over the market and pushed the asset north so in a matter of minutes, BTC found itself trading $2000 higher.
BTC is still stuck at $19K now but most of the altcoins are being untypically stable and have been for a few days now. Ethereum continued to trade at $1050 and until the start of the weekend, ETH was close to breaking below $1000 and stood at $1100. BNB is still under $220, MATIC is down by 4% and ADA is set at $0.45. LEO is up by 3% while The Sandbox saw the biggest icnrease of 5%. the cumulative market cap of all assets remained stagnant at over $850 billion.
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