The price action continues to head in the direction of the $53,000 level, and while volatility in the last 48 has decreased considerably and everything points to probably consolidating a pause before the next upward momentum, there are already some negative aspects that reveal some weakness in the price action.
As of today, the Bitcoin price soared to a new 2024 high, touching USD 53,019 on February 20, before falling sharply to USD 50,000 on some exchanges. Traders cite consistent inflows into BTC exchange-traded funds.
Now, in correspondence to information disclosed by Nancy Lubale, "Bitcoin futures open interest (OI) has reached a new yearly high, reaching levels last seen in November 2021. This indicates an increase in trading activity around the largest cryptocurrency by market capitalization."
In this regard according to "data from cryptocurrency futures trading and reporting platform Coinglass shows that total OI for BTC futures reached USD 22.69 billion on February 20, the highest since November 11, 2021, approaching the USD 23 billion peak recorded then."
The truth is, "Continued bullish investor sentiment appears to be driven by rising inflows into spot BTC ETFs, even as outflows from gold ETFs increase. Bitcoin has surpassed the USD 49,000 high reached after the approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission on Jan. 10"
SOURCES CONSULTED
Cointelegraph. Bitcoin price rejects at $53K as futures open interest hits a 2-year high. Link
OBSERVATION:
The cover image does not belong to the author: @lupafilotaxia, the image was taken from: Cointelegraph
