Bitcoin analysis for April 14, 2021
Looking at the chart on the four-hour time frame, we see that Bitcoin has reached a new high at $ 64,800. By setting the Fibonacci Retracement level, we see that we have reached certain levels and that they coincide around the $ 65500-66000 zone, and now we can expect some resistance and possible withdrawal after the new high. If it is expected, that potential pullback is up to $ 61,000 to test the previous higher high.
Before that, we are looking for support at $ 62380 at a 127.2% Fibonacci level. Following the MACD indicator, we see that the MACD blue line is still on the bullish side, currently moving sideways and slowing down. Also, from the last three histograms, we see that two were weak and that they warn of a potential price pull to lower levels on the chart.
Open interest in Bitcoin futures rose to new record highs ahead of Coinbase’s direct listing on Nasdaq on April 14. Crypto market data aggregator Glassode states that open interest in Bitcoin exceeded $ 27 billion for the first time as Bitcoin pushed new record highs above $ 63,000.
The milestone suggests that traders may be speculating on higher prices, although some may be protecting themselves from incoming instability. The lion’s share of trading activities is on Binance, where $ 5.2 billion in positions make up almost 20% of all open positions held on the stock exchange. They are followed by Bibit with $ 4.66 billion, OKEX with $ 3.75 billion, and then Huobi, FTKS, and CME with approximately $ 3 billion.
Despite record open interest, Bitcoin futures appear to have fallen over the past month, from $ 117 billion as of March 15 to between $ 50 and $ 75 billion in April. The decrease in volume may indicate that traders are becoming more cautious about opening new positions as the date of listing on Coinbase approaches, with a significant share of open interest probably representing positions opened during the previous weeks and months.
In contrast, open interest in Bitcoin options has declined since contracts worth a record $ 6 billion expired in late March. The number of options increased during April, and the data suggest that many traders protected their positions while billions were mobilized to protect themselves from falling to $ 40,000 last week.
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