Bitcoin’s open interest led to the prediction of high BTC price volatility, as $70,000 remained a key bullish recovery level.
Bitcoin (BTC) missed the mark on Wednesday as the market priced in geopolitical volatility.
Main points:
-
Bitcoin traders are waiting for the end of the inclusive price action with an eye on $70,000.
-
An optimistic forecast says that the low $80,000 zone could re-enter by the end of March.
-
Open interest trends indicate further BTC price volatility.
Bitcoin is struggling to cement a key springboard level
Data from TradingView showed a flat BTC price on the day, with the trade center around $70,000.
After failing to break out of its local trading range, BTC/USD was increasingly missing bullish signs as traders were wary of price breakouts.
“Nothing has changed, the price is still consolidating within the range,” the Cryptorphic trader told X followers in his latest analysis.
“The weekly candle closed the decline and overall the structure is still biased to the side until we see a clear breakout or breakout.”
Trader Killa has identified potential upside reversal zones as the next short-term price targets.
“If we start moving down to a monthly and weekly opening of around $66K-$66.9K, there’s a good chance the $64K liquidity pool will disappear,” they said on the day.
“If we start going up at 72-73K, the next POI is 74-76K.”
Meanwhile, for trader and analyst Mark Cullen, there was reason to hope for a higher rally if the bulls solidify $70,000 as support.
“70K is important, $BTC should bounce back and hold another attempt at breaking the range. If it can do that, then 70K’s high / 80K’s low will be on the cards before the end of the month,” he said.
BTC price may see “highly volatile environment”
Earlier, Cointelegraph reported that significant resistance is expected to block any BTC price advance above $70,000.
related to: Bitcoin permabull Arthur Hayes says he’s not betting $1 on BTC right now
Many market participants expect new macro lows to emerge from the existing range structure, which is currently at or below $50,000.
Examining open interest (OI) in Bitcoin futures markets, BorisD, a contributor to onchain analytics platform CryptoQuant, warned that continued volatility is ahead.
“Looking at the past few days, the 30-day change in Open Interest has entered a strong recovery phase. This suggests that new positions are re-entering the market and potential volatility will increase over the next few weeks,” he said in a Quicktake blog post on Tuesday.
“In the coming weeks, Bitcoin could face a very volatile environment. As Open interest increases, leverage in the market will also increase. This could open the door to stronger price swings, sudden directional movements, and another round of forced liquidations.”
This article does not contain investment advice or recommendations. Every investment and business move involves risk, and readers should do their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph shall not be liable for any loss or damage arising from your reliance on this information.
