Key Points:
The increase in spot and futures trading volume indicates that traders are gradually returning to the cryptocurrency market.
Traders are positioning for an upward trend, but technical charts suggest that short-term traders may take profits at intraday highs.
On Tuesday, the price movements in the crypto market exhibited high volatility, with BTC reaching a daily high of $114,000 and ETH briefly breaking through to $4,110. SOL also attempted to break the $200 mark, quickly rising to $198. These breakout movements, especially BTC's performance, align with the increase in BTC open interest, indicating that traders are returning to the market after the severe sell-off on October 10 that led to $20 billion in futures liquidations.
Data from CoinGlass clearly shows evidence of traders returning to the market, with BTC futures open interest rebounding from a low of $28 billion on October 11 to over $32 billion.
Charts provided by Hyblock analysts show that during BTC's rise from $107,453 to $114,000, the four-hour anchored open interest and cumulative trading volume difference turned positive. This breakout was also accompanied by an increase in BTC funding rates, indicating that this rally is primarily driven by the futures market.
Analysts point out that as BTC price re-establishes a trading range after the sell-off, traders will begin to target the largest liquidity areas. This dynamic was validated in today's market, where BTC successfully absorbed the upper liquidity in the $114,000 to $115,000 range.
Although data indicates that traders are becoming more confident in risk-taking, Cointelegraph technical analyst Rakesh Upadhyay states, "It is expected that sellers will continue to take profits at intraday range highs," while bulls are expected to defend the $107,000 support level.
Related: Bitcoin (BTC) whale opens a $235 million short position after netting $200 million from the market crash.
This article does not contain any investment advice or recommendations. Any investment and trading activities involve risks, and readers should conduct their own research before making decisions.
Original article: “Bitcoin (BTC) price surges to $114,000, highlighting improving confidence among futures traders”
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