Price of Bitcoin approaches $45K despite warnings about leveraged traders using Bitcoin
Written byRock Buivy
Post Date: 12 Feb, 24
Bitcoin’s daily candle is $1,300, but worries about the price strength of the coin reaching new heights are raised by a $1 billion increase in open interest.
On February 8, bitcoin held about 3% higher as the cryptocurrency markets hinted at some much-needed upside.
Bitcoin: BTC/USD 1-day chart. Source: TradingView
Bitcoin’s open interest rises to around $1 billion
BTC price activity was centred around $44,700, according to data from TradingView and Markets Pro.
Following the daily close on February 7, the largest cryptocurrency surged to $44,766 on Bitstamp, reaching its highest levels in almost a month.
Even while the change was very small in percentage terms, it helped to mitigate the aggravating situation surrounding BTC/USD that has existed since mid-January. The couple has stayed firmly in the range, as Cointelegraph said.
“Bitcoin is on the rise once more, as it approaches $45K. In his most recent analysis on X (previously Twitter), Michaël van de Poppe, the founder and CEO of MN Trading, stated that “the range is still defined.”
I believe we will pre-halve to $48 – 51K and then correct back down for some more consolidation.
Van de Poppe alluded to the timing for short-term Bitcoin prices that will culminate in the block subsidy halving event, currently set for April 17 or thereabouts.
But sentiment among some traders was wary. J. A. Maartunn, a contributor to the on-chain analytics platform CryptoQuant, reviewed the factors that contributed to the most recent surge and cautioned that its sustainability might be limited.
A section of an X post stated, “This pump is driven by leverage,” that day.
In less than a day, the Open Interest has surged by +$982 million. If the price remains stable, this may be handled, but if it starts to move the other way, be prepared for volatility.
Snap swings in the price of Bitcoin have previously been caused by substantial spikes in open interest over brief periods of time; one such instance was the October run from $28,000.
Financial pundit Tedtalksmacro pointed out that rising bid liquidity as opposed to a thinning out of potential sell-side pressure could help avert any abrupt market turnaround.
Optimists for the price of bitcoin double down on halving and macro risk
These even include a possible run beyond $60,000 by the middle of April, a thesis that its originator, well-known pundit Fred Krueger, has since reiterated.
The case for ATH within the next 30 to 60 days.
Let's step back and ask ourselves how the next 30 to 60 days could play out. A lot of people are fearing a dip, but I want to lay out the bull scenario.
GBTC selling pressure on BTC price is largely over. The 1 Billion in Gemini…
This week, former BitMEX CEO Arthur Hayes also reaffirmed his belief in the skyrocketing prices of Bitcoin, albeit for other reasons, most notably the renewed volatility in the US regional banking industry.
Research and data researcher James Van Straten of the cryptocurrency analytics company CryptoSlate said, “I said Bitcoin was about to start its bull market almost this time last year, just after the banking crisis.”
At this time, coins are still being bought at higher prices; the bull market is very well-organized.
In the volatile world of cryptocurrency, where optimism and speculation often dictate market movements, the price of Bitcoin has become a focal point for investors seeking substantial returns.
Despite its notorious price fluctuations, optimists within the crypto community are doubling down on their beliefs, particularly with regards to two significant factors: the Bitcoin halving event and macroeconomic risks.
The Bitcoin halving event, which occurs roughly every four years, serves as a fundamental aspect of Bitcoin’s monetary policy, reducing the rate at which new coins are created by half.
Historically, these halving events have been associated with significant price rallies, as the reduced supply of new coins creates a scarcity effect, driving up demand.
This scarcity narrative has been embraced by many Bitcoin proponents, who view each halving event as a catalyst for exponential price growth.
Fred Krueger, a prominent figure in the cryptocurrency space, has been vocal in his support of this thesis, predicting a potential surge in Bitcoin’s price to over $60,000 by the middle of April.
In conclusion, the optimism surrounding Bitcoin’s price doubling down on factors like the halving event and macroeconomic risks underscores the dynamic and speculative nature of the cryptocurrency market.
While the potential for significant price appreciation exists, investors must approach Bitcoin with caution, acknowledging both its potential rewards and inherent risks.
As the cryptocurrency landscape continues to evolve, only time will tell whether Bitcoin can fulfill its promise as a transformative financial asset.
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Written by
Rock Buivy
Over the years, I've dedicated countless hours to researching and analyzing various crypto betting platforms, understanding their features, strengths, and weaknesses. This knowledge has allowed me to produce in-depth, well-rounded reviews that help users make informed decisions when it comes to choosing the right platform for their needs.
