Bitcoin saw a spike in Open Interest after $2.5 billion in Futures liquidations. Despite volatility, traders are actively positioning for more price action, keeping the market alive and kicking.  

Key Takeaways  

1. Bitcoin’s Open Interest Spikes Despite Liquidations: Despite $2.5 billion in Futures positions being liquidated, Bitcoin’s Open Interest surged, reflecting trader confidence and renewed market activity.
2. Resistance at $63,400 Holds Back BTC Growth: Bitcoin’s price rise hit a barrier at the 200-day moving average around $63,400, limiting further momentum despite crossing the 50-day average.
3. Traders Position for More Price Action: Even with volatility, traders are actively opening new positions, betting on Bitcoin's potential to break through key resistance levels. 

Liquidations Hit Bitcoin Futures  

During Bitcoin’s recent rally, $2.5 billion worth of Futures positions were liquidated, mostly short sellers. Yet, the Open Interest drop across top exchanges stayed under 5%, keeping the market from crashing.  

Resilience Amid Market Volatility  

The market showed strength, recovering fast despite liquidations. At Bitcoin’s March all-time high, the leveraged cost hit $120M per week. Recently, that cost dropped to $15.3M weekly, reflecting a move to more cautious trading.

Read More: Navigating Bitcoin (BTC) Price Movements: Key Insights for Investors

New Funds Flow into Bitcoin’s Open Interest  

Despite the liquidations, traders opened fresh positions. A report said that Bitcoin’s Open Interest jumped from $17.5B on Oct 10 to $19B by Oct 12, signaling confidence among traders as Bitcoin’s price showed upward momentum.  

Interest Remains High  

Though it slightly dipped, Open Interest stayed strong above $18B, driven by Bitcoin’s push beyond $63,000. Traders are betting on bigger moves ahead, positioning themselves for possible breakouts.

Read More: Peter Todd Refutes HBO Claims of Being Satoshi Nakamoto

BTC Faces Key Resistance Levels

Bitcoin’s 3% rise on Oct 11 pushed the price to $62,500, crossing the 50-day moving average. But the 200-day moving average around $63,400 is proving tougher to beat, capping further growth for now.  

A Closer Look at Price Action  

BTC touched $63,100 but couldn't push past the $63,400 resistance. As of now, the price slipped slightly to $62,700, marking a 1% drop. Traders are watching closely to see if Bitcoin can break the barrier.  

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FAQ

Q1: Why did Bitcoin’s Open Interest increase?

A1: Bitcoin’s slight price rise sparked optimism, leading traders to open new positions, even after a large liquidation event.

Q2: What resistance is Bitcoin facing now?

A2: Bitcoin faces strong resistance at the 200-day moving average, around $63,400, capping its recent upward momentum.

Q3: Will Bitcoin break through the resistance soon?

A3: It depends on market sentiment in the coming days. Traders are closely watching Bitcoin’s performance to see if it can push beyond the $63,400 mark.  

Conclusion

Bitcoin’s recent rise brought excitement, but key resistance at $63,400 stands in the way of further gains. With Open Interest still strong, the market seems ready for more action. The next days will show whether BTC can break through or stay range-bound. Looking to ride the wave? Buy Bitcoin now on Bitrue and stay ahead of the market action!

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