BTC price nears $45K amid warning Bitcoin leveraged traders in control

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8 Feb 2024

Bitcoin sees a $1,300 daily candle, but a $1 billion surge in open interest sparks concern over BTC price strength at new levels.

Bitcoin BTC
$45,314
held around 3% higher on Feb. 8 as crypto markets teased some much-needed upside.

BTC/USD 1-day chart. Source: TradingView

Bitcoin adds nearly $1 billion open interest

Data from Cointelegraph Markets Pro and TradingView showed BTC price action focusing on $44,700.
The largest cryptocurrency spiked to $44,766 on Bitstamp after the Feb. 7 daily close, marking its highest levels in nearly a month.
While comparatively modest in percentage terms, the move went some way to alleviating the frustrating landscape around BTC/USD in place since mid-January. As Cointelegraph reported, the pair has remained tightly rangebound.

“Bitcoin going for it again, as we're approaching $45K. The range is still defined,” Michaël van de Poppe, founder and CEO of MN Trading, wrote in his latest analysis on X (formerly Twitter).

“I think we'll reach $48-51K pre-halving and correct back down for some more consolidation.”

BTC/USD annotated chart. Source: Michaël van de Poppe/X

Van de Poppe referenced the short-term BTC price timeline culminating in the block subsidy halving event, which is currently scheduled to hit around April 17.
Among some traders, however, the mood was cautious. Reviewing what led to the latest uptick, J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant, warned that its longevity may be limited.
“This pump is driven by leverage,” part of an X post read on the day.

“The Open Interest has increased by +$982m in less than 24 hours. While this can be manageable if the price holds steady, brace yourself for volatility if it starts to reverse.”

BTC/USD chart with aggregate open interest. Source: J. A. Maartunn/X

Significant increases in open interest over a short period have been responsible for snap BTC price moves before, among them during October’s run from $28,000.

In what could help stem any sudden market turnaround, financial commentator Tedtalksmacro noted increasing bid liquidity versus a thinning out of would-be sell-side pressure.

BTC price optimists double down on halving, macro risk

As Cointelegraph continues to report, the halving is responsible for an increasing number of bullish BTC price predictions.

These even include a potential run past $60,000 before mid-April — a theory since repeated by its creator, popular commentator Fred Krueger.

Former BitMEX CEO Arthur Hayes likewise reiterated his faith in sky-high Bitcoin prices this week, but for different reasons, particularly the resurgent instability in the United States regional banking sector.
“Almost this time last year, just after the banking crisis, I said Bitcoin was about to start its bull market,” James Van Straten, research and data analyst at crypto insights firm CryptoSlate, continued on the topic.