Photo: Coin Telegraph
Bitcoin price recovered by 27% just three days after testing the $31,000 support and earlier today bull recaptured the $40,000 level.
This quick recovery occurred despite the digital asset facing one of the largest buy-side liquidations in a single day as $1.5 billion was wiped off the books. Interestingly, futures contract traders appear to have returned with an even larger appetite.
After such a large liquidation event, an increased appetite from futures traders is somewhat unexpected but professional investors are skilled at hedging their positions and executing complicated strategies involving options.
To measure the impact of the recent liquidations and better understand how these futures traders have been positioned, one should start by analyzing the open interest.
Large reductions in this indicator could show that traders were caught by surprise and currently unwilling to add positions.
BTC futures aggregate open interest. Source: Bybt.com
As the above data indicates, BTC futures open interest reached a $13 billion all-time-high on Jan 14, a 74% increase from the previous month.
For those unfamiliar with futures contracts, buyers and sellers are matched at all times. Every long contract is betting on further upside and has been traded against one or more entities willing to short it.
Read more from the original article here.
면책 조항: 본 게시글에 표현된 견해는 전적으로 작성자의 견해이며 Followme의 공식 입장을 대변하지 않습니다. Followme는 제공된 정보의 정확성, 완전성 또는 신뢰성에 대해 책임을 지지 않으며, 서면으로 명시적으로 언급되지 않는 한 해당 내용을 기반으로 취해진 어떠한 조치에 대해서도 책임을 지지 않습니다.
더 오래된 의견은 없습니다. 소파를 가장 먼저 잡으십시오.