With the increase in Bitcoin futures open interest to 89,000 BTC on Binance, market volatility is anticipated to rise.
Increase in Open Interest
As new money enters the market and positions are established in anticipation of significant price action, the increase in open interest indicates a rise in trader activity and frequently portends sharp price movements.
Key Price Levels
Bitcoin is currently trading at around $63,500. Key price levels to watch include resistance at $64,000, which was recently tested, and support at $62,000. If trading volume supports an upward move, a break above $64,000 could spark further rallies.
Market Impact
Failure to sustain $62,000 may lead to sell-offs, sending Bitcoin price downward. Main support below $62,000 is at $60,500. Sharp market moves against these positions could increase the risk of liquidation cascades.
The increase in Bitcoin futures open interest indicates possible significant market moves. Traders should be mindful of the $64,000 resistance and the $62,000 and $60,500 support levels.
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