Bitcoin

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Bitcoin’s 11% weekly gains have some traders worried that the market may witness one last retracement before BTC continues its rally to new all-time highs.
<h2 id="bitcoin-long-liquidations-may-be-at-risk">Bitcoin long liquidations may be at risk</h2>
“Current trading activity around 68.4k is linked to earlier volatility from July 29, when prices dropped to 49k just five days later,” pseudonymous derivatives trader TheKingfisher <a data-ct-non-breakable="null" href="https://x.com/kingfisher_btc/status/1846768730182762561" rel="null" target="null" text="null" title="null">said</a> in an Oct. 17 post on X.&nbsp;
The recent spike in Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="nofollow noopener" target="_blank" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) volatility suggests that “hedging is getting more expensive, and leverage is costing more” as volatility continues to rise, the analyst wrote.&nbsp;
“Even traders using 50x leverage who bought at the top haven’t been liquidated yet, with prices holding at 67,350,” TheKingfisher said, adding that “there’s a 62.48% chance of liquidation within 24 hours.”
Moreover, TheKingFisher highlighted that the liquidity pool is expanding and that when this happens, a “Darth Maul candle” type of exit may occur.
<blockquote>
 “A drop to 61.3k would be painful.”
</blockquote>
<figure>
 <img alt="Why are Bitcoin traders worried about a 'painful' BTC price dip?" src="https://s3.cointelegraph.com/uploads/2024-10/019299c7-bfca-796f-92f4-b3d2e70ae17c" title="">
 <figcaption style="text-align: center;">
 Bitcoin liquidation map. Source: <a data-ct-non-breakable="null" href="https://x.com/kingfisher_btc/status/1846768730182762561" rel="null" target="null" text="null" title="https://x.com/kingfisher_btc/status/1846768730182762561">TheKingfisher</a>
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Meanwhile, MN Capital founder Michael van de Poppe shared similar sentiments, opining that <a data-ct-non-breakable="null" href="https://cointelegraph.com/learn/what-is-bitcoin-a-beginners-guide-to-the-worlds-first-cryptocurrency" rel="null" target="null" text="null" title="null">Bitcoin</a> was following the same pattern that has held over the last seven months.&nbsp;
Van de Poppe <a data-ct-non-breakable="null" href="https://x.com/CryptoMichNL/status/1846815912994947234" rel="null" target="null" text="null" title="null">shared</a> the following chart in an X post showing Bitcoin’s latest run above $68,000, which saw the bulls take the supply-side liquidity at around $65,000.
According to the chart, Bitcoin price is likely to <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-price-dip-another-leg-up-open-interest-crypto-analyst" rel="null" target="null" text="null" title="null">drop first</a> to collect the demand-side liquidity around $64,130 before another leg up.&nbsp;
<blockquote>
 “I think we’ll correct slightly, the final correction, and then, from next week onward, pushing toward a new all-time high.”
</blockquote>
<figure>
 <img alt="Why are Bitcoin traders worried about a 'painful' BTC price dip?" src="https://s3.cointelegraph.com/uploads/2024-10/019299c8-376f-78b9-8fba-a525c28a3ea1" title="">
 <figcaption style="text-align: center;">
 BTC/USD 12-hour chart. Source: <a data-ct-non-breakable="null" href="https://x.com/CryptoMichNL/status/1846815912994947234/photo/1" rel="null" target="null" text="null" title="https://x.com/CryptoMichNL/status/1846815912994947234/photo/1">Michael van de Poppe</a>
 </figcaption>
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Furthermore, the recent surge in Bitcoin Futures open interest (OI) has left some analysts wary about <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-profit-taking-74k-peak-speculators-binance-500m" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-profit-taking-74k-peak-speculators-binance-500m">a possible pullback</a> to flush out long positions.&nbsp;
On Oct. 16, CME Bitcoin futures notional OI hit an all-time high of 179,745 BTC, worth about $1.2 billion at current rates, as K33 Research Senior analyst Vetle Lunde noted.&nbsp;
<blockquote>
 “Open interest has grown by a massive 32,440 BTC since Oct. 10 - and active market participants drive this growth, seeing a weekly growth in exposure of 40%.”
</blockquote>
<figure>
 <img alt="Why are Bitcoin traders worried about a 'painful' BTC price dip?" src="https://s3.cointelegraph.com/uploads/2024-10/019299c8-a904-7533-a6ac-7070ec68da1e" title="">
 <figcaption style="text-align: center;">
 CME Bitcoin Futures OI. Source: K33 Research
 </figcaption>
</figure>
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/ether-price-crashed-30-the-last-time-this-indicator-peaked-eth-dump-ahead" rel="null" target="null" text="null" title="null">Ethereum price crashes often follow ETH open interest peaks — Will history repeat?</a>
<h2 id="what-if-surging-oi-is-bullish-for-btc-price">What if surging OI is bullish for BTC price?</h2>
Still, not all analysts agree that surging OI is a precursor for a sharp price correction.
Pseudonymous Bitcoin trader Wicked <a data-ct-non-breakable="null" href="https://x.com/CryptoMichNL/status/1846815912994947234" rel="null" target="null" text="null" title="null">said</a> the recent surge in OI on CME Bitcoin futures to all-time highs “signals further bullishness” for the largest cryptocurrency by market capitalization.&nbsp;
For crypto futures and information platform CoinGlass, the <a data-ct-non-breakable="null" href="https://x.com/coinglass_com/status/1846692646280134986" rel="null" target="null" text="null" title="null">surge</a> in Bitcoin futures OI “signals a significant price movement ahead.”
<figure>
 <img alt="Why are Bitcoin traders worried about a 'painful' BTC price dip?" src="https://s3.cointelegraph.com/uploads/2024-10/019299c9-6976-774d-85d1-fa79f98c89be" title="">
 <figcaption style="text-align: center;">
 Source: <a data-ct-non-breakable="null" href="https://x.com/coinglass_com/status/1846692646280134986" rel="null" target="null" text="null" title="https://x.com/coinglass_com/status/1846692646280134986">CoinGlass</a>
 </figcaption>
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 This 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.
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Why are Bitcoin traders worried about a 'painful' BTC price dip?

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