BNB has seen a surge in Bitcoin futures open interest ahead of key US economic data and crypto-specific events. The exchange saw a nearly 7% increase in Open Interest (OI) on September 23. This pushed BTC Futures up from around 85K to 90K at the time of writing. Notably, former Binance CEO Changpeng Zhao (CZ) is set to be released from prison on September 29.
This has led investors, especially on Binance, to take on higher risks to bet on BTC, perhaps betting on the possibility of BTC rising ahead of the US Personal Consumption Expenditures (PCE) data.
Surge In Speculator Demand For BTC
Market experts are waiting for PCE data to gauge the pace of future Fed rate cuts. BTC may react to this data.
Some market observers see the event as a potential catalyst for BTC price volatility. September 27-29 could see strong volatility for the largest digital currency.
The sudden increase in OI shows that market interest is increasing. It also highlights the optimistic outlook of futures market speculators.
However, this also puts speculators at risk of large liquidations, which could cause volatility and sharp price swings for BTC.
According to Coinglass's 1-week liquidation map, the key levels to watch are $62K and $65K. Short positions are accumulating near $65K.
Additionally, there are also significant long positions at $62K (as shown in bright orange).
A strong breakout above $65K could liquidate many short positions at this level, leaving bears facing huge losses. Similarly, a retest of the $62.2K area could impact over $800 million in long positions.
Bitcoin Price Action
Bitcoin's value remains below $64,000, and has failed to break above the important 200-day MA (Moving Average). At press time, the 200-day MA was $63.9K.
According to trader Daan Crypto, a strong move above this level and the price channel could mark a positive market structure change that could accelerate BTC to its all-time high.
This could trigger a short squeeze and push the bears into a loss. Looking ahead, we will see if these catalysts help BTC break above the upper resistance at $65K.
