The Bitcoin market sentiments are usually bullish with an uncertain timeline. The price volatility often favors the ‘hodlers’ in the long run. However, the past two years are starting to see the increasing role of derivatives traders benefitting from the price drops in Bitcoin [BTC].
Current invalidation of the bull market has the traders start looking for a bottom in Bitcoin’s price. However, as Bitcoin [BTC] continues the slump downwards, the bottom has been hard to find.
According to Datamish, About $87.3 million in longs were liquidated on BitMEX in the past 24 hours. This is following the $400 million in liquidations on Friday. The short orders in the market are beginning to increase as well.
Apart from Bitfinex, almost all derivatives market projects a short interest. Moreover, traders at Binance are unusually short, with over 86% in short interest.
The long/short ratio on Okex is also starting to indicate a shift towards the bears as it reaches a critical ratio of 1. The BTC basis on Okex is negative as well, with magnitudes above $15. The rising open interest with an increase in short interest indicates a shift altogether towards the bears.
CME Bitcoin Closing this Week
The monthly contracts one of the largest regulated futures exchange, CME is about to close this Friday.
The vertical lines mark the closing days of the monthly futures contracts on Bitcoin. However, the closing days have seen considerable fluctuation in the past.
Past performances are no guarantee of future results. Nevertheless, the past three months on bears have seen a slight bounce after the closing.
Moreover, the gap recorded this week is towards the downside. The closing before the gap is at $7330. In the past, Bitcoin has had a strong tendency to fill these gaps.
Furthermore, after continued selling, the traders will also be looking for a relief bounce. The closing of one of the largest futures market could bring relief this week.
Do you think that Bitcoin will be able to hold above $6600 by week’s end? Please share your views with us.
The post CME Bitcoin [BTC] Futures Gap and Monthly Closing Points at a Bounce to $7330 appeared first on Coingape.
Source: Coin Gape