‘Violent’ Bitcoin breakout due as BTC open interest nears all-time high

Market Analysis

Bitcoin (BTC) stayed rangebound at the Oct. 6 Wall Street open with traders already planning for a “violent” breakout.

Bitcoin whale activity highlights the importance of $19,000

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it moved up and down by only a matter of a few hundred dollars on the day.

The amount of $20,000 formed a focus for the pair, which meandered in step with consolidating U.S. equities and dollar strength.

With no spot catalyst in sight on short timeframes, on-chain analytics resource Whalemap turned to largescale buy and sell points to sketch out likely support and resistance.

To the downside, $19,174 marked the site of whale buy-ins, suggesting its continued strength as a line in the sand.

Bullish progress, meanwhile, would have to contend with a cloud of resistance at $21,500.

“Don’t be distracted by the noise,” the Whalemap team commented alongside a chart showing the key levels overnight.

As Cointelegraph reported, $19,000 was already on the radar, reflecting the broader aggregate price sold for the BTC supply — Bitcoin’s so-called “investor cost basis.”

Elsewhere, others targeted $21,000 as a likely turning point should a spate of bullishness kick in.

Futures open interest approaches a record 604,000 BTC

On longer timeframes, meanwhile, popular trading account Daan Crypto Trades flagged an impending triangle breakout for BTC/USD after weeks of comparative sideways trading.

Related: BTC price still not at ‘max pain’ — 5 things to know in Bitcoin this week

“$BTC The only two lines you need for the next week,” he summarized.

On derivatives markets, traders were steadily adding dry powder, which could fuel a “violent” end to the status quo.

“As bitcoin consolidates around $20,000, BTC denominated futures open interest sits just below all time highs at 604k BTC,” Dylan LeClair, senior analyst at UTXO Management wrote in a dedicated thread on the day.

“Whether up or down, when bitcoin breaks out of its current range, it’ll likely be a violent move.”

LeClair noted that the all-time high in open interest was mainly collateralized by stablecoins, marking a distinct change from the heavy upside volatility seen in April 2021, when BTC/USD hit $58,000.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.

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