Bitcoin (BTC) was back at $57,000 on Oct. 13 as a classic move left hopeful traders liquidated to the tune of $200 million.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader sees parallels to August price action
Reminiscent of multiple surges over the past week, Bitcoin thus gained 5.5% on the day, lining up a rematch of five-month highs.
“This correction on Bitcoin is nicely comparable to the price action in August,” Cointelegraph contributor Michael van de Poppe commented.
Fellow trader and analyst Rekt Capital meanwhile confirmed a higher low for BTC/USD during the retracement, thus positioning it for further strength.
Futures open interest explodes over 70%
Meanwhile, data from derivatives showed CME Bitcoin futures open interest skyrocketing over the past month, further fuelling cause to be positive on price action ahead.
While still below all-time highs from February, the trend is encouraging, commentators said, considering the likelihood of traders frontrunning a possible futures-based exchange-traded fund (ETF) approval in the United States.
Bitcoin futures open interest chart. Source: Javier Paz/ Twitter
“The herd is not just coming, they’re stampeding,” Three Arrows Capital CEO Zhu Su added on the data from Forbes analyst Javier Paz.
Feedzy ~ Read More