Quick Take
Bitcoin has been experiencing a prolonged period of stability since hitting an all-time high above $70,000 in March, with the decline being compared to a price fluctuation of around $9,000 in 2019.
Analysts Checkmate note that these price fluctuations have become “larger and more persistent,” suggesting the current “price range is becoming increasingly volatile. This volatility is a sign that a significant upside or downside could be imminent.
Intraday price action has shown significant deviations from the average, which could be due to traders trying to catch a price breakout from this prolonged range.
When Bitcoin approaches a key level, such as $60,000, traders tend to increase leverage in anticipation of a breakout. However, recently these breakouts have failed to materialize, leading to increased realized volatility.
ByBit has become increasingly popular for spot and derivatives trading, with funding rates and open interest fluctuating rapidly in response to price movements. This volatility is in part due to traders attempting to time the market with long and short positions. Additionally, uncertainty surrounding the upcoming US presidential elections has further pushed Bitcoin's future performance into a state of unpredictability.
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