Bitcoin's year-end price surge is hanging
After a period of volatility, Bitcoin (BTC) has rebounded to $63,000, and the market is full of expectations for its performance in the fourth quarter. But pressure in the derivatives market may become an obstacle to its substantial rise.
Although Bitcoin's speculative advantage currently remains at 2.5%, showing a certain stability, traders are beginning to tend to short Bitcoin in the short term, which may weaken its long-term upward momentum.
In March, when Bitcoin reached its all-time high of $73,000, the open interest (OI) exceeded $30 billion for the first time, and in July it hit a new high of $37.22 billion. But this overheated market sentiment caused the price of Bitcoin to quickly fall back to $54,000 within a week.
In the past 24 hours, as Bitcoin tested the $63,000 level, a large number of short liquidations occurred, which may lead to a price adjustment in the short term. Although bulls currently dominate the derivatives market, it is still challenging to turn this short-term adjustment into a long-term reversal, that is, the price reaches $75,000.
Bitcoin is currently in a fragile state given the uncertainty in the derivatives market. If the pressure in the derivatives market continues, Bitcoin may encounter resistance around $64,000.
