Bitcoin (BTC), which was at $57,000 Oct. 13, was a classic move that saw hopeful traders liquidated to the tune $200 million.
BTC/USD 1-hour candle charts (Bitstamp). Source: TradingView
A trader sees parallels between August’s price action and August.
Cointelegraph Markets Pro and TradingView data showed that BTC/USD reached a high of $57250 on Bitstamp. This was an increase of almost $3,000 in just three hours.
Bitcoin gained 5.5% in the last week, recalling multiple surges. This translates into a rematch at five-month highs.
In the midst of bullish optimism, those who wanted to shorten more than $54,260 were disappointed.
Michael van de Poppe, a Cointelegraph contributor, commented that the Bitcoin correction is “pretty comparable to August’s price action.”
“Just a minor correction for a few more days, then Bitcoin continues to grind upwards, while altcoins continue dropping in their $BTC pairs.”
Analyst and fellow trader Rekt Capital confirmed that the BTC/USD had fallen to a lower level during the retracement. This position positions it for greater strength.
#BTC forms a Higher Low on the dip and continues to maintain the blue level as support These are the two levels BTC needs to hold as support to maintain the highs$BTC #Crypto #Bitcoin https://t.co/yX5LKVboRn pic.twitter.com/6JhzRPP3v6
— Rekt Capital (@rektcapital) October 13, 2021
Futures open interest explodes to 70%
Data from derivatives shows that CME Bitcoin futures open interests have risen significantly over the last month. This is encouraging news for price action.
Related: BlackRock Chairman Jamie Dimon praises cryptography, says he wants to know more about Bitcoin
Although the February highs are still below their all-time highs, the trend is encouraging, commentators stated, given the possibility that traders will frontrun a possible approval of an exchange-traded fund in the United States.
Chart showing open interest for Bitcoin futures. Source: Javier Paz/Twitter
Zhu Su, CEO of Three Arrows Capital, said that the herd isn’t just coming; they’re also stampeding.” He added that data was provided by Forbes analyst Javier Paz.