Search

BitMEX CEO Says, ‘Bitcoin Blow off top seems nigh’ – Here’s the Futures Market Update - Coingape

Bitcoin [BTC] price pump has traders looking for further long orders as $10,000 seems like the nearly target. The volume at BitMEX was about $5 billion dollars yesterday which seems to be leading the futures market. It has tripled in the last two days along with increasing volume at Okex, Huobi and Binance as well.

Advertisement

The funding rate on BitMEX is also increasing signalling a compilation of long interests in the price.

bitcoin futures volume
BTC/USD 1-Day Volume on Futures Exchanges (Source)

Along with the funding rate, as BitMEX CEO, Arthur Hayes tweeted, Futures basis is also increasing. Basis is difference between the futures and spot prices on exchanges. According to Hayes, the retail buyers or spot buyers will step in soon enough. He tweeted,

According to datamish, more than $40 million shorts were liquidated during the recent pump to $9400.

Advertisement
1xbit

Bitcoin [BTC] long orders are now compiling as the funding rate continues to climb higher. In fact, the funding rate has not been this high since September last year.

bitcoin funding rate
XBT/USD 4-Hour Chart on BitMEX with Funding Rate (TradingView)

The increasing funding rate, increases the probability of a squeeze in the opposite direction. Nevertheless, during bull markets, the high funding rates is not an uncommon site.

Open Interest on CME Jumps 2 Fold

The increasing Open Interest (OI) along with increasing volume are usually signals of bullish momentum. However, Prominent Derivatives and crypto trader, Jacob Canfield tweeted,

At press time, the OI at BitMEX continues to be around $950 billion. Moreover, the OI in CME is also sky-rocketing in the last few days. According to skew data, the volume at CME has increased two folds since 20th January, 2020. Hence, institutional players seems to be having a say in the recent pump.

futures cme volume
Bitcoin Futures Volume at CME (Source)

Nevertheless, the volatility in Bitcoin is so high that chasing tops for shorts at the moment could lead to huge losses. Moreover, the corrections or dips have usually been quickly bought in the past. Hence, while betting against the trend seems lucrative with traders expecting a pull-back, traders must strictly adhere to their stops.

Moreover, if the spot interest increases as noted by Hayes, the swing result would be on the upside only.

Do you think that the bull market in Bitcoin is in? Please share your analysis on local top. 

BitMEX CEO Says, ' Bitcoin Blow off top seems nigh' - Here's the Futures Market Update
Article Name
BitMEX CEO Says, ' Bitcoin Blow off top seems nigh' - Here's the Futures Market Update
Description
Bitcoin [BTC] price has traders looking for further long orders as $10,000 seems like the nearly target. The volume at BitMEX was about $5 billion dollars yesterday which seems to be leading the futures market.
Publisher Name
Publisher Logo
Coingape is committed to following the highest standards of journalism, and therefore, it abides by a strict editorial policy. While CoinGape takes all the measures to ensure that the facts presented in its news articles are accurate.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Author: Nivesh Rustgi

Nivesh from Engineering Background is a full-time Crypto Analyst at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com

Let's block ads! (Why?)


https://news.google.com/__i/rss/rd/articles/CBMiNWh0dHBzOi8vY29pbmdhcGUuY29tL2JpdGNvaW4tYmxvdy10b3AtZnV0dXJlcy1tYXJrZXQv0gE5aHR0cHM6Ly9jb2luZ2FwZS5jb20vYml0Y29pbi1ibG93LXRvcC1mdXR1cmVzLW1hcmtldC9hbXAv?oc=5

2020-01-29 04:54:50Z
52780578894532

Bagikan Berita Ini

0 Response to "BitMEX CEO Says, ‘Bitcoin Blow off top seems nigh’ – Here’s the Futures Market Update - Coingape"

Post a Comment

Powered by Blogger.