journalist
Posted on:
- This week, open BTC futures on Binance surged from 85K BTC to 90K BTC.
- Volatility expected for BTC ahead of key US inflation data and CZK release.
Binance [BNB] At the exchange, Bitcoin [BTC] Futures contracts will launch ahead of major U.S. economic data and crypto-specific events.
On September 23, open interest (OI) on exchanges increased by nearly 7%, which is expected to see BTC futures jump from 85,000 to 90,000 coins at the time of writing.
Of note, Binance's former CEO, Changpeng Zhao (CZ), will be released from prison on September 29th.
This means that speculators, especially on the Binance exchange, took on extra risk by betting against BTC, as they may have been confident of its potential price. Rally Ahead of the release of US PCE (Price Consumption Expenditures) data.
Speculator demand for BTC surges
Source: TradingView
Market experts are awaiting the PCE data to predict the pace of future interest rate cuts from the Fed, so BTC could react to the data.
Some market observers believe that the event could be a potential catalyst for BTC price volatility, meaning that the largest cryptocurrency could see its biggest swings between September 27-29.
The surge in OI indicates growing market interest. It also highlights the bullish outlook of speculators in the futures market.
However, this exposes speculators to the risk of large-scale liquidations, which could lead to further volatility and price fluctuations for BTC.
According to Coinglass' 1-week liquidation map, key levels to watch were $62,000 and $65,000, with short positions increasing around the $65,000 level.
Additionally, there was a large long position of $62,000 (shown in light orange).
Source: Coinglass
A sharp rally above $65,000 could liquidate several short bets at that level, resulting in huge losses for the bears. Similarly, a hard retest of the $62,200 area could trigger long positions worth $800 million or more.
Bitcoin Price Trends
Bitcoin's value remained below $64,000 and failed to rise above the crucial 200-day moving average (MA), which was at $63,900 at the time of writing.
According to trader Daan Crypto, a strong move above the levels and channels could indicate a bullish market structure. shiftThis could accelerate BTC towards its ATH.
Source: DaanCrypto/X
That said, such a rally could trigger a short squeeze and expose the bears to losses. It remains to be seen whether these catalysts will propel BTC past the $65,000 overhead hurdle.
