Bitcoin Price Teeters Around $52K as CME Bitcoin Futures Open Interest Reaches New High of $6.8 Billion — TradingView News

Bitcoin

BTCUSD

settled back into a familiar intraday trading range as the week of February 18 came to a close, with traders taking advantage of weekend market movements.

Trader: Bitcoin Momentum “Robust” Despite Surge in OI

Market data from Cointelegraph Markets Pro and TradingView indicated that the $52,000 level was pivotal to BTC’s price stabilization efforts.

Bitcoin had previously dipped to a weekly low of $50,680 on Bitstamp before it quickly regained nearly $1,500 in value in the subsequent hours. Since then, a descent to these low levels was not revisited.

Skew, a well-known trading analyst, pointed to a notable shift in market participation during the second half of the week on Wall Street, suggesting a decrease in on-the-spot buying by the weekend, characterized by “predominantly taker-led fluctuations”.

Skew noted in a later update, “Currently, we’re witnessing spot buyers re-entering the market, particularly marked by Binance’s spot trading activities.”

A record-setting $6.8 billion in open interest on Bitcoin futures markets via CME Group was, according to CoinGlass monitoring, a sign of potential impending volatility.

Daan Crypto Trades, another respected market commentator, suggested a healthier leverage landscape within the market, despite open interest’s upward trend when measured in BTC terms.

He contended, “The more than 100% price surge since October seems constructive in regard to leverage, with funding rates largely maintaining a neutral stance and BTC-denominated open interest actually being lower. The USD value has, of course, escalated during this period as the base asset, BTC, has appreciated.”

Crucial BTC Price Levels for Week’s Closing

Skew elaborated that for the upcoming weekly closure, the necessary momentum had to sustain Bitcoin’s relative strength index (RSI) over 4-hour charts.

The 21-period exponential moving average (EMA), sitting at around $51,500, was likewise critical.

He further explained, “Regarding spot transactions in the range of $52K to $53K, we’re observing notable spot market sell-offs coinciding with price jumps, which is common in scenarios of profit-taking. The crucial aspect moving forward, given the prevailing uptrend, is the emergence of sufficient spot demand on dips, often characterized by intense limit buy orders outweighing aggressive seller-driven trades.”

Matthew Hyland, an analyst and trader, underscored the importance of preserving a $49,000 support level for a bullish closure of the week.

This article is for informational purposes only and does not constitute investment advice or recommendations. All trading and investment moves come with risk, and it’s advised that readers perform their due diligence prior to making any decisions.