Is the Seven-Time Failure Indicator in Bitcoin a Harbinger of a Fall Again?

Data in the derivatives market indicate that a new decline may be seen in the price of Bitcoin (BTC).

J.A. Maartunn, one of the authors of the blockchain analysis firm CryptoQuant, explained the reason for the increase in the price of Bitcoin.

According to CoinGecko data, the price of Bitcoin (BTC) increased by 3.5 percent in the last 24 hours and exceeded $ 60,000. During the same period, the prices of Ethereum, BNB, Solana and XRP increased by 2.3 percent, 5.7 percent, 2.1 percent and 4.2 percent, respectively.

The trend may reverse

Maartunn said that the increase in the price of Bitcoin was largely supported by leveraged positions in the derivatives markets. The analyst based this on the 5 percent increase in open positions on the exchanges earlier today.

According to Coinalyze data, there is a total of $17.2 billion worth of open positions in Bitcoin markets. These include contracts that have not yet expired or been closed.

“In all of the last seven leveraged increases, the Bitcoin price has reversed,” Maartunn said. “Although there is no guarantee that this will happen again this time, it makes me suspicious,” the analyst commented.

The increase in leveraged positions in the market can lead to both increases and decreases being experienced more violently. The closing of these positions is generally considered by commentators as a positive development for Bitcoin and cryptocurrency markets.

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