Over the past day, the market experienced turbulence following the sudden resignation of Binance CEO Changpeng Zhao due to a guilty plea related to a prolonged money laundering investigation. Despite this initial shock, the market rebounded from its initial downturn. Notably, Bitcoin made a recovery, climbing from a significant low of $35,500. This has led to a continuous surge in its open interest and flashed bullish signs on-chain.
CME Takes Over Binance In BTC OI
Binance faced a significant withdrawal of funds, resulting in total crypto market liquidations surpassing $231 million. Data from Coinglass reveals that Bitcoin experienced liquidations totaling more than $67 million, with nearly $48 million originating from long positions.
In a notable development, CME has played a crucial role in Bitcoin’s recent recovery. Institutional investors at CME have become the leading buyers of Bitcoin, surpassing Binance in open interest. This growing interest from institutions has led to a higher premium on Bitcoin prices on CME, currently about $600 more than on other exchanges.
CME’s figures show a consistent growth in open interest (OI), signaling ongoing activity and investment in the market. Furthermore, there’s an uptick in trading volumes, reflecting a comeback in trader interest. The basis, the gap between the spot and futures prices, has narrowed slightly, suggesting potential opportunities for carry trades. This trend of futures prices aligning closer to spot prices may indicate a move towards a more equilibrium-based and stable market.
Interestingly, Bitcoin’s long/short ratio has made a surge and it is currently trading at 1.0907. As of now, traders are becoming bullish as bulls hold 52% long positions. However, bears are not far behind as they hope for a price decline by holding 48% short positions. This might fuel BTC price further to gain its $37K region.
What’s Next For BTC Price?
Bitcoin recently found support at $35.5K and has been steadily climbing towards the crucial resistance level after rebounding. Bulls are currently accumulating as the BTC price reaches a cheap zone. However, the resistance zones have been strongly defended by sellers, creating a range-bound area.
If the bulls manage to break through the $38,000 resistance this time, it would signal the beginning of the next upward trend phase. In this case, the price might rise towards the $40,000 mark, which is expected to act as another significant resistance level. The current upward trend of the RSI line and a stable momentum in moving averages signal that the easier path for Bitcoin is upwards.
Should Bitcoin’s price sharply decline from the key resistance of $38K and fall below the 20-day EMA, it could trigger a wave of sell-offs from short-term traders. This scenario could lead to a correction in the BTC price, potentially driving prices down to $34,700, and possibly further to $32,800.
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