“Trading activity around 68.4k is linked to earlier volatility from July 29, when prices dropped to 49k five days later,” anonymous derivatives trader
The analyst noted that Bitcoin volatility has increased, making “hedging is getting more expensive, and leverage is costing more” as volatility rises.
With prices holding above 67,350, TheKingfisher claimed “there’s a 62.48% chance of liquidation within 24 hours.” Even traders employing 50x leverage who purchased at the top haven’t been liquidated.
TheKingFisher also noted that the liquidity pool is increasing, which may lead to a “Darth Maul candle” departure.
MN Capital founder Michael van de Poppe said Bitcoin was following the same path over the past seven months.
Van de Poppe posted the following graphic on X showing Bitcoin's last surge over $68,000, when bulls took supply-side liquidity at $65,000.
The recent rise in Bitcoin Futures open interest (OI) has some analysts worried about a reversal to clear long holdings.
K33 Research Senior analyst Vetle Lunde highlighted that CME Bitcoin futures notional OI reached an all-time high of 179,745 BTC, worth $1.2 billion at current values, on Oct. 16.
Anonymous Bitcoin trader Wicked stated the latest record high in CME Bitcoin futures OI “signals further bullishness” for the biggest cryptocurrency by market capitalization.
