Binance Open Bitcoin Futures Bets Jump by Over $1B as BTC Chalks Out Bearish Candlestick Pattern: Godbole

Key Points

  • Bitcoin (BTC) dipped below $92,000, revisiting levels seen multiple times since December.
  • An uptick in perpetual futures open interest indicates an influx of bearish short positions.
  • Cumulative volume delta (CVD) shows increased selling pressure outpacing buying activity.
  • BTC's price action formed a bearish marubozu candle, suggesting seller dominance.

Summary

Bitcoin experienced a significant price drop, falling below $92,000 during overnight trading, revisiting levels that have been resilient since December. This decline was accompanied by a notable increase in open interest for perpetual futures on Binance, with an additional 12,000 BTC worth over $1 billion added as the price fell from $96,000 to under $92,000. This surge in open interest, coupled with a price drop, suggests that traders were betting on further declines by opening new short positions. The cumulative volume delta (CVD) on both futures and spot markets turned increasingly negative, indicating that selling pressure was significantly higher than buying activity. On Monday, Bitcoin's price action formed a bearish marubozu candle, characterized by a long red body with minimal upper and lower shadows, signaling strong seller control. This pattern, combined with Bitcoin trading below key moving averages, could lead to further price drops, with support levels identified near $89,200 and resistance at around $99,520.

coindesk
February 25, 2025
Crypto
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