What's Hot

    Chinese tax authorities step up pressure on private crypto investors

    26.01.2023

    Tether will look for crypto transactions that pay for child pornography

    26.01.2023

    On-chain activity in the Optimism network collapsed after the end of the NFT bonus program

    26.01.2023
    Facebook Twitter Instagram
    Friday, January 27
    Facebook Twitter Instagram
    Crypto News
    • Home
    • Bitcoin
    • Ethereum
      • Altcoins
      • ICO
    • Analytics
    • Blockchain
    • Other
      • DeFi
      • Mining
      • Regulators
      • Security
    Crypto News
    Home»Bitcoin»Clearing the futures market to help bitcoin
    21855ad1af79d4a4fde89fe1ea21eab0cf797407
    Bitcoin

    Clearing the futures market to help bitcoin

    AdministratorBy Administrator14.12.2021No Comments3 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email


    Reading time: ~ 2 m


    Falling open interest in the bitcoin futures market may signal that BTC is ready to form a local bottom

    Over the past couple of weeks, Bitcoin has fallen in price by more than $ 10,000: on December 1, BTC was trading above $ 58,000, and now it is closer to $ 47,000. Traders in the futures and other derivatives market are to blame for causing a rampant volatility and starting a correction cycle.

    Clearing out positions in the derivatives market has become a natural part of market cycles. Sometimes they help to determine the local price highs and lows of the cryptocurrency.

    The amount of open positions, or open interest (OI), shows the volume of open positions in the futures market. The higher the OI value, the more volatile the markets will be when contracts are closed or expired. Thus, this indicator is often used as a criterion for market stability.

    OI drops to healthy values

    According to Glassnode, over the past week, OI has declined by about $ 2.5 billion. This is usually how the market is cleared of volatile positions: long positions with high leverage are liquidated, prices calm down.

    Analysts at Glassnode added that the impact of the futures markets on the price is especially strong during periods when the OI rises above 380 thousand BTC. Since the beginning of the month, open interest has dropped by more than 50 thousand BTC to 330 thousand BTC, which is already considered a more favorable situation for trading.

    Clearing the futures market to help bitcoin

    Open positions on futures – Glassnode

    Over the past week, the OI has started to rise slowly, which may indicate a new wave of volatility. However, Glassnode noted that after clearing derivatives positions, spot markets and on-chain activity tend to have a stronger impact on price action than OI. He added that the amount of open positions in Bitcoin perpetual futures fell to a much healthier level:

    This once again confirms the fact that there was a significant event that led to a decrease in the number of derivative open positions, and the market seems to be reacting to this with caution, instead of increasing momentum again.

    Bitcoin groped for support

    Bitcoin prices fell to an intraday and 10-week low of just under $ 46,000 in the final hours of December 13, but on the morning of December 14, the value of the cryptocurrency began to slowly rise.

    Bitcoin has strong support at $ 46,500, where the 200-day moving average is located – an indicator of the long-term trend. Bitcoin is trading at $ 47,350 at the time of publication, according to CoinGecko.

    On Twitter, it was reported about buying when the cryptocurrency fell, and now that positions with leverage are cleaned up again, this area can become another local bottom, pushing off from which Bitcoin will go up.

    Disclaimer

    All information contained on our website is published in good faith and objectivity, and for informational purposes only. The reader is solely responsible for any actions he takes based on the information received on our website.




    #Clearing #futures #market #bitcoin

    Bitcoin Clearing Futures Market
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Avatar of Administrator
    Administrator

    Related Posts

    AI Calls Bitcoin a Tool to Destroy Central Banks

    26.01.2023

    Anthony Scaramucci Predicts Bitcoin’s “Renaissance” in 2023

    26.01.2023

    the market share of algostablecoins collapsed tenfold

    26.01.2023

    Crypto Analyst Expects Bitcoin to Rise Above $30,000 in February

    26.01.2023
    Add A Comment

    Leave A Reply Cancel Reply

    Recent Posts
    • Chinese tax authorities step up pressure on private crypto investors
    • Tether will look for crypto transactions that pay for child pornography
    • On-chain activity in the Optimism network collapsed after the end of the NFT bonus program
    • Shiba Inu Network Transferred 3 Trillion SHIB Tokens Worth $38 Million
    • AI Calls Bitcoin a Tool to Destroy Central Banks
    Recent Comments
    • 수원출장 on A professor from a US university restored the Tornado Cash code to GitHub
    • 123 on Taproot support added to LND Lightning client
    • houston junk car buyer on 16,000% increase in social media mentions in 2021 Shiba inu
    • Jim Carrey Memy on Bitwise Launches NFT Tracking Index Fund
    • hotshot bald cop on Kava developers launch testnet with EVM support
    Archives
    • January 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    Categories
    • Altcoins
    • Analytics
    • Bitcoin
    • Blockchain
    • Ethereum
    • ICO
    • Mining
    • Other
    • Regulators
    • Security
    Meta
    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org
    Top Posts

    Subscribe to Updates

    Get the latest sports news from SportsSite about soccer, football and tennis.

    Advertisement
    Demo
    Facebook Twitter Instagram Telegram
    • Home
    • Bitcoin
    • Ethereum
    • ICO
    © 2023 Bt-Crow.com - CryptoNews

    Type above and press Enter to search. Press Esc to cancel.