BTC Price Falls $52,000 as CME Bitcoin Futures OI Hits Record $6.8 Billion – TradingView News

Bitcoin BTCUSD Price returned to the middle of an intraday trading range at the weekly close on February 18 as bulls benefited from weekend trading.Cointelegraph

Trader: Bitcoin Rally “Healthy” Despite OI Surge

Data from Cointelegraph Markets Pro and TradingView showed that $52,000 is serving as a focal point for BTC price consolidation.

The largest cryptocurrency saw a decline to $50,680 on Bitstamp the previous day, marking its lowest level in several days.

However, a rapid bounce occurred in the following hours, lifting the price by almost $1,500, and at the time of writing, the lows had yet to see a retest.

Popular trader Skew analyzed the week's action and pointed to a change in trader behavior in the second half of the trading week on Wall Street.

He revealed that spot buying slowed towards the weekend and that since then there have been “dips and upswings mainly driven by buyers”.

“So far, some spot buyers have returned here, with Binance Spot leading the way,” he wrote that day.

The $BTC market thread continued in collaboration with @_WOO_X $BTC Aggregate CVDs & Delta

If we use spot CVD here, we can see clear deviations from price, which I have marked as red circles (limiting sales at price).

The LTF saw a change in flow between the 15th and 16th, namely… https://t.co/tDAJYsrw5I pic.twitter.com/mJLgKJnPst

February 18, 2024

Meanwhile, burgeoning open interest (OI) in CME Group's Bitcoin futures markets, which hit a record $6.8 billion, was an indication of volatility to come, according to data from monitoring resource CoinGlass.Cointelegraph

However, in a broader discussion of open interest, popular trader Daan Crypto Trades noted a divergence when denominated in BTC.

“This +100% rally since October has been, in my opinion, healthy from a leverage perspective,” he argued.

“Funding has largely maintained its neutral rate and $BTC-denominated open interest is lower. “The USD value has naturally increased during this time as the underlying asset (BTC) has increased in value.”

Cointelegraph

Important weekly closing prices are emerging for the BTC price

Further, Skew said that bulls need to maintain the bullish momentum of Bitcoin's Relative Strength Index (RSI) on the 4-hour time frame until the weekly close.

The 21-period EMA (Exponential Moving Average), which is currently at $51,500, was also important.

“Regarding spot flows in the $52,000-$53,000 range, there is notable spot selling in upswings, which is often the case with profit-taking,” he explained of the situation on Binance.

“Given the current uptrend, it is critical to see sufficient spot demand on dips, most often seen as absorption at the lows where limit buying outweighs taker selling.”

#BTC weekly close is bullish above $49,000

If you close below, $44,000 comes into play to start, easy pic.twitter.com/sL0HOh1giX

February 17, 2024

Fellow trader and analyst Matthew Hyland highlighted $49,000 as the final line in the sand to protect until the close.

This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.