Bitcoin (BTC) futures could soon face a state of massive liquidation and volatility, according to an analyst from blockchain data analytics platform Arcane Research.
Arcane Research’s analyst who interprets open interest data Vetle Lundesuggested that a period of major liquidation for Bitcoin futures may be approaching after prolonged silence. According to the analyst’s comment, it reached mid-September. $22,800 Bitcoin price, which has been holding its horizontal course for a long time after the level, indicates the calm before the storm. The analyst, who suggested the current situation in the crypto money markets, sharp price changes in the short and medium term, made the following statements about the subject:
I think the current open positions are above any level that can be considered sustainable. Transparent data from market signals prevent me from having any insight into which direction that leverage will decline.
The analyst, who avoids specifying which direction the sharp movement will take, also current situation can create opportunities also stated. It involves buying both a put option and a call option with the same price and expiration date in the current market conditions. to the straddle strategy stressed that it can benefit traders who are familiar with it.
The analyst, who clearly states that he does not care much about the short and medium-term movement, is considered in the long-term. The bullish outlook for Bitcoin continues to carry on. The analyst’s long-term positive expectation is particularly BlackRock, Citadel and Nasdaq It is further strengthened by the recent entry of major financial institutions such as:
I am confident that the show will continue and reach new heights in the not too distant future.
According to data provided by Coinglass, in the last 24 hours, only $180 million position liquidation it happened. Although it is not possible to predict which direction it will take after this long silence, it should be taken into account that the market may make sharp movements to get the necessary liquidation.