Bitcoin's open contract soared, are traders ready for big volatility?

October contract value fluctuations on CBOE hit a record low

Bitcoin (BTC) has just experienced a sharp 24-hour price movement when the $ 7,000 support level has been broken. Also in the last day, the number of open interest (Open Interest) on the derivatives exchange BitMEX has increased dramatically.

The fall below the support level indicates that the market is in a bear market after going sideways. The next time there will be many negative changes to the structure of the cryptocurrency market.

Although the market has plummeted in the past several hours, but according to the market data monitoring site Skew, the open interest of crypto on the exchanges tends to increase sharply. This has led experts to ask what will happen next from cryptocurrency investors.

Bitcoin's Open Interest increased as the market fluctuated

The past few days have been a series of positive days for the Bitcoin market as the price of this asset has continuously risen to $ 6,600 to nearly $ 7,500.

Data: Skew
Data: Skew

And after hitting the set resistance at $ 7,500, Bitcoin has entered a period of moving sideways with the support zone set around $ 7,100.

And in the last 24 hours, this support level has lost and set a new level at around $ 6,800.

One factor that has led to volatility in the coming days is that the open interest index on the BitMEX trading platform increased sharply. The Open Interest figure represents the total value of open positions on a trading platform.

A sharp increase in Open Interest may indicate that the number of small traders is preparing to execute big buy and sell orders in the near future.

Maybe you are interested:

  • Bitcoin lost support of $ 7,000 as soon as 1,000 BTC was deposited into Huobi

  • Bitcoin price falls below $ 7,000, will the 2015 scenario repeat itself?

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According to BeInCrypto / Coin68
Recompiled ToiYeuBitcoin

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