Bitcoin stabilized at around $41,000 on Friday and is down about 9% over the past week. Analysts expect prices to move sideways, although they may be vulnerable to further declines if technical support levels are breached.The reduction in leverage in bitcoin and ether futures markets could signal healthier market conditions. Typically, there is a lower chance of additional … [Read more...] about Market Wrap: Crypto Traders Reduce Leverage, Selling Pressure Subsides
Leverage
Bitcoin Drops 5%, Slipping Below $50K on Leverage Washouts
Laurent Kssis, a crypto exchange-traded fund (ETF) expert and director of CEC Capital, a crypto trading advisory firm, said that both bitcoin and ether remain vulnerable to price pullbacks, fueled by leverage washouts. According to the data site Coinglass, some $187 million of crypto trading positions were liquidated over the past 24 hours. Source link … [Read more...] about Bitcoin Drops 5%, Slipping Below $50K on Leverage Washouts
Bitcoin Vulnerable to Rising Leverage Despite Short-Term Optimism
“During corrections, declining ASOL is a signal that investor confidence is improving, and fewer coins are spent,” blockchain data firm Glassnode tweeted on Wednesday. A confirmed trough in the ASOL indicator could point to a short-term market bottom similar to what occurred in July and October. Source link … [Read more...] about Bitcoin Vulnerable to Rising Leverage Despite Short-Term Optimism
Leverage Demand, Not Leverage Itself, Down in Bitcoin
Bananarama may have sung about a cruel summer, but November is turning out to be no great shakes for cryptocurrency investors, either. There are just six weeks left in 2021 and the CoinDesk Bitcoin Price Index (XBX) dipped nearly 20% off an all-time high set Nov. 10.Yet there’s something interesting in one thing going in the markets right now: leverage. Or, rather, the recent … [Read more...] about Leverage Demand, Not Leverage Itself, Down in Bitcoin
Bitcoin Pullback Pauses as Traders Reduce Leverage
Separately, in the bitcoin options market, open interest (contracts that have been traded but not yet liquidated by an offsetting trade) is near all-time highs last seen during March and April, which preceded a significant price drop. It is possible that open interest can remain around current levels for another month before a sustained downturn in BTC’s price. Source link … [Read more...] about Bitcoin Pullback Pauses as Traders Reduce Leverage