Recent surges and volatility in Bitcoin (BTC) prices have sparked widespread debate among investors and analysts. BTC has seen a 11% weekly gain, approaching the $68,000 mark, raising concerns about what lies ahead for the market. Some analysts believe these price movements may signal an upcoming correction, while others argue that Bitcoin could soon reach a new all-time high.
Bitcoin Correction on the Horizon?
Many analysts expect a correction for Bitcoin. Leading derivatives trader TheKingfisher has highlighted the role of recent volatility, suggesting that the price could soon pull back. He noted that the activity around the $68,400 level mirrors the volatility observed in July, leading to increased costs for leveraged positions in futures markets. This indicates that many investors are holding high-risk positions that could be liquidated.
TheKingfisher also pointed out that the liquidity pool is expanding, and this could lead to a sharp correction, which he dubbed a “Darth Maul” move. This would result in Bitcoin dropping to $61,300, which would be painful for investors.
$BTC Current trading activity around 68.4k is linked to earlier volatility from July 29, when prices dropped to 49k just five days later. The recent spike in volatility suggests options hedging is getting more expensive, and leverage is costing more as volatility rises. Even… pic.twitter.com/MeDtjSG1IU
— TheKingfisher (@kingfisher_btc) October 17, 2024
Whales Increase Activity Amid Bitcoin Volatility
Despite the expectations of a market correction, Bitcoin whales have been ramping up their activity. According to data from Santiment, whale transactions have reached their highest levels in 10 weeks, with over 11,600 large transactions recorded over the past few days. These movements indicate that whales are closely monitoring the market and preparing for a potential price increase.
The surge in whale activity has also garnered attention on social media, where Bitcoin is now being discussed more than any other altcoin. Analysts suggest that this heightened attention could fuel a continued price increase, though short-term profit-taking and FOMO may also play a role.
Record Open Interest in Bitcoin Futures
Another noteworthy development is the rise in open interest in Bitcoin futures. CryptoQuant founder Ki Young Ju reported that open interest has reached $20 billion, with Bitcoin now just 8% away from its all-time high. Additionally, new whales have continued to accumulate Bitcoin, with their holdings now totaling 1.97 million BTC. These whales, each holding at least 1,000 BTC, have rapidly increased their holdings over the past year.
Ki Young Ju also noted that these new whales have increased their BTC balances by 813% since the beginning of the year, now holding 9.3% of the total supply, valued at approximately $132 billion.
Bitcoin ETFs Driving Price Increases
Another key factor behind Bitcoin’s recent rise is the introduction of spot Bitcoin ETFs. Over the past three days, $1.2 billion has flowed into these ETFs, bringing the total ETF assets to $63 billion. Notably, BlackRock’s iShares Bitcoin Trust has accounted for 30% of these purchases, contributing to Bitcoin’s price increase.
For more in-depth updates on the cryptocurrency market, visit The Bit Journal.
https://twitter.com/Thebitjournal_
https://www.linkedin.com/company/the-bit-journal/
https://t.me/thebitjournal
Follow us on Twitter and LinkedIn and join our Telegram channel to be instantly informed about breaking news!
