Over the weekend, Bitcoin soared past $63,000, a big jump from Friday, when it fell below $60,000. Since there hasn’t been much big news lately, this surge has led to a lot of speculation about what’s behind it. Here’s a look at three important things that have been affecting Bitcoin’s price recently.
A well-known trader on Bybit and a leader on DeBank, DeFi^2 (@DefiSquared), says that a significant “whale” has been busy in the Binance perpetual futures market. According to DeFi^2, this entity has been buying a lot. They said, “Since the local BTC lows on Friday, almost the entire bounce this weekend is from a single entity on Binance Perps that has hammered over $450 million in buys in 500 BTC blocks at a time during the lowest liquidity hours of the market.”
People are wondering what the whale is up to, especially since the Mt. Gox distribution is coming up soon and could affect Bitcoin’s price security and liquidity. “Curious what the endgame is right before the start of Mt. Gox distribution,” DeFi^2 added.
Bitcoin’s Open Interest And Price Dynamics
They will have to either drive the market up so high that there is a short squeeze in order to get out of the trade, or they will become a huge cascade risk if the market goes against them.A crypto investor named Daan Crypto Trades (@DaanCrypto) talked about the role of the futures market in Bitcoin’s recent rise.
He focused on how open interest affects market price changes. “Open Interest has mostly gone up during this run up. There have been a few small short squeezes and some long profit taking in between.” If the price keeps going up, I think there are a lot of diving shorts around $60,000 that will be squeezed out. “That $65K range is still a big area to keep an eye on,” Daan said.
Data from Coinglass showed that Bitcoin’s open interest rose from $30.97 billion on Saturday to $32.21 billion by Monday. However, compared to other weekends, only $35 million worth of BTC shorts were liquidated.
Technical analysis was also very important. A famous crypto expert named CRG (@MacroCRG) called the price change in Bitcoin over the weekend a “beauty of a breakout.” CRG drew attention to the perpetual futures base and flat funding rates, which are signs that markets are about to change significantly. “What a lovely breakout that is.” Funding plus perps on a flat rate. The weekly candle is a huge pinbar with an 8% wick, which means it’s likely a reverse candle. He said, “Full send.”
CRG also pointed out that Bitcoin had broken above a declining trendline on the 4-hour Binance chart, which could mean the end of recent bearish trends. Also, the BTC weekly close showed a strong signal with a major pinbar candle that had an 8% wick, which suggests that prices may be moving up.
These things show how complicated the relationship between market trends, whale activity, and technical analysis is. They all played a part in Bitcoin’s recent rise, showing how resilient and risky the cryptocurrency is right now.
