Bitcoin open interest sparked a prediction of high BTC price volatility to come as $70,000 remained the bulls’ key reclaim level.
Bitcoin (BTC) traded sideways on Wednesday as traders weighed geopolitical risk and waited for a break from its recent range.
Key points:
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Bitcoin traders are waiting for the end of rangebound price action, with the focus on $70,000.
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An optimistic forecast says that the low $80,000 zone could come back into play by the end of March.
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Open interest trends suggest heightened BTC price volatility next.
Bitcoin struggles to cement key springboard level
Data from TradingView showed a flat BTC price on the day, with trading centered around $70,000.
BTC/USD 1-hour chart. Source: Cointelegraph/TradingViewAfter failing to break out of its local trading range, BTC/USD looked increasingly devoid of bullish cues as traders stayed wary of price breakdowns.
“Not much has changed, price is still consolidating inside the range,” trader Cryptorphic told X followers in their latest analysis.
BTC/USDT one-day chart. Source: Cryptorphic/XTrader Killa flagged areas of high potential liquidations as the next short-term price targets.
“If we start pushing down toward the monthly open and weekly open around $66K–$66.9K, there’s a strong likelihood that the $64K liquidity pool gets swept,” they explained on the day.
BTC liquidation heatmap. Source: Killa/XFor trader and analyst Mark Cullen, meanwhile, there was reason to hope for a move higher if bulls could cement $70,000 as support.
“70K is critical, $BTC needs to get back above and hold for another attempt at a range break out. If it can do that then high 70K’s / low 80K’s will be on the cards before the end of the month,” he summarized.
BTC/USD four-hour chart. Source: Mark Cullen/XBTC price may see “highly volatile environment”
Earlier, Cointelegraph reported that significant resistance is expected to halt any BTC price advances beyond the $70,000 mark.
Related: Bitcoin permabull Arthur Hayes says he wouldn’t bet $1 on BTC right now
Many market participants continue to expect new macro lows to result from the current rangebound structure, with these currently as low as $50,000 or less.
Examining open interest (OI) on Bitcoin futures markets, BorisD, a contributor at onchain analytics platform CryptoQuant, warned of ongoing volatility to come.
“Looking at the most recent days, the 30-day Open Interest change has entered a strong recovery phase. This suggests that new positions are being added back into the market and that volatility is likely to increase over the next few weeks,” he wrote in a “Quicktake” blog post on Tuesday.
Bitcoin futures aggregated OI 30-day % change. Source: CryptoQuantThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness, or reliability of any information in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
Source: https://cointelegraph.com/news/bitcoin-flip-highly-volatile-bull-case-80k-rebound?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
