In less than 4 hours, Bitcoin has lost nearly 6% of its value, which is the opposite of this week's upward momentum, as the futures market has had an uplifting day. Ending the month starting with a golden cross, the leading coin has dropped to its lowest price in more than a month.
However, derivative traders cannot be distracted because more volatility means that the volume also increases.
24-hour Bitcoin Volume | Source: skew
The top three Bitcoin Futures (Bitcoin futures) exchanges total more than $ 15 billion, with the total volume from unregulated exchanges having exceeded $ 20 billion for the first time this month. Two. OKEx topped the chart with $ 5.7 billion, BitMEX and Huobi are closely followed, with respectively $ 5.05 billion and $ 4.89 billion.
Wednesday, February 26, margin trading volume increased higher than Valentine's Day, when prices rose above the $ 10,000 mark for the second time of the year.
OI Bitcoin Futures | Source: skew
Prices dropped so sharply and so quickly that some open positions were closed on derivatives exchanges when the Open Interest (OI) fell. When the volume reached a high of February, OI again set a low. The lack of short open positions indicates that fear is covering the market.
BitMEX, the company with the highest OI in the group, also saw OI drop to $ 1.41 billion, down 7.84% in less than 24 hours. Huobi and OKEx also saw their OI decrease by 14.75% and 16.3% respectively.
This decline is a sign of a bearish outlook in the market because derivatives traders are wary of opening long positions, expecting a rally.
OI for the entire trading day was recorded at $ 4.07 billion, down 11.52% from the previous day and 15.02% from the highest level witnessed on February 19 when the price fell 5, 5% in an hour, when traders expect a big move to consolidate or reverse it.
Liquidation of BitMEX XBT / USD | Source: skew
Undoubtedly, the closure of the open positions is escalated by the immediate liquidation triggered by this rapid discount. More than $ 155 million was liquidated on BitMEX alone, with 95% of those taking long positions, estimated at $ 152 million and having $ 5.2 million in short positions.
The liquidation also took place on February 27, more than 29 million dollars were “in”.
Bitcoin has seen some incredible price drops in the past 24 hours, the coin has lost support at $ 9,500 and entered a comprehensive downtrend as the bears are attempting to erase near-profits. Here is BTC.
It seems more and more likely that Bitcoin will face some disadvantages in the near future, as many analysts note that this pullback may cut prices further before BTC finds enough support. to start higher.
However, there are a few simple factors that seem to indicate the possibility that BTC is about to lose significantly more, which could make it reel and set a new low for the year.
Bitcoin plummeted below $ 9,000 when analysts looked at many key support levels
The catalyst for the ongoing sell-off is probably the rapid denial of the $ 10,000 that the coin faced on Sunday, which seems to confirm the bearish market structure. developed due to an incident witnessed just one week ago.
DonAlt, a well-known analyst on Twitter, explained in a recent tweet that BTC is currently approaching some strong support levels, but he still predicts it will continue to decline until it reaches around $ 8,000. la.
$ BTC update:
Still looking good for bears in my opinion.
Given that I'm trading counter-trend, I moved my stop another step down just above $ 10000.
If I'm correct we won't see $ 10000 again for quite a while.
If I'm wrong, Apparll walk away with 2 weeks of funding + a couple% move. pic.twitter.com/j9BRr9TRrO
– DonAlt (@CryptoDonAlt) February 24, 2020
"The current situation is facing many disadvantages. Although the prices are approaching interesting ranges, this is still not the worst price for traders and I can close a quarter to this weekly support level. The rest will still look to the price range of about 8k ".
The following factors showing significant losses that may be imminent
In addition to showing clear signs of technical decline, there are a number of factors that suggest that the annual Bitcoin bottom may not yet come.
Mac, a well-known trader, gathered these factors in a recent tweet, telling followers that OI, BTC's foundations and foundations are worse than October 2018.
Legit boys, $ 6k might not have been the bottom after all.
This OI, Basis, Funding is worse than Oct 2018
– Mac ❄️🐺 (CEO of $ OGN the next $ MATIC) (@MacnBTC) February 26, 2020
"Maybe $ 6k is not yet the bottom. OI, facilities and foundations are worse than October 2018. "
Unless the bulls can step up and catalyze a significant buying pressure, it seems the next negative moves are waiting for us ahead.
Bitcoin price today. Source: Coinmarketcap
Disclaimer: This is not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.
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