‘Violent’ Bitcoin Breakout Due to BTC Open Interest Approaching All-Time High
Bitcoin (BTC) remained range-bound at the October 6 Wall Street open with traders already planning a “violent” breakout.
Bitcoin whale activity highlights importance of $19,000
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it moved up and down by just a few hundred dollars on the day.
The amount of $20,000 formed a focus for the couple, which meandered along consolidation of US stocks and dollar strength.
With no spot catalyst in sight in short timeframes, analytics resource Whalemap turned to large-scale buy and sell points to outline likely support and resistance.
On the downside, $19,174 marked the spot for whale buying, suggesting its continued strength as a line in the sand.
Bullish progress, meanwhile, would have to contend with a cloud of resistance at $21,500.
“Don’t be distracted by the noise,” the Whalemap team commented next to a chart showing the overnight key levels.
As Cointelegraph reported, $19,000 was already on the radar, reflecting the broader overall price being sold for BTC supply — Bitcoin’s so-called “investor cost basis.”
Elsewhere, another targeted $21,000 as a likely turning point should a wave of bullishness hit.
Open future interest is approaching a record high of 604,000 BTC
On longer time frames, meanwhile, popular trading account Daan Crypto Trades the flag an impending triangle breakout for BTC/USD after weeks of comparative sideways trading.
Related: BTC Price Still Not at ‘Max Pain’ – 5 Things to Know in Bitcoin This Week
“$BTC The only two lines you need for next week,” he summarized.
In derivatives markets, traders steadily added dry powder, which could lead to a “violent” end to the status quo.
“As bitcoin consolidates around $20,000, BTC-denominated futures open interest is just below the all-time high of 604k BTC,” wrote Dylan LeClair, senior analyst at UTXO Management in a dedicated thread on the day.
“Whether up or down, when bitcoin breaks out of its current range, it’s likely to be a violent move.”
LeClair noted that the all-time high in open interest was mainly secured by stablecoins, marking a clear change from the large upside volatility seen in April 2021, when BTC/USD reached $58,000.
The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trade involves risk, you should do your own research when making a decision.
