in

Bitcoin’s newest dip beneath $60K alerts market stabilization amid geopolitical tensions – Bitfinex



Receive, Manage & Grow Your Crypto Investments With Brighty

Bitcoin’s (BTC) nearly 10% drawdown last week was a “healthy realignment” that reduced the risks of abrupt price swings in the coming days, according to the latest “Bitfinex Alpha” report.

The pullback, ignited by escalating tensions in the Middle East, briefly took BTC below the $60,000 level before the market stabilized. This caused perpetual contracts’ open interest (OI) to shrink from an overheated $35 billion to a more stabilized $31.8 billion zone.

Notably, the drop in OI correlates with increased spot market selling, triggering a series of long liquidations. The price initially lost its crucial support level at $65,200, followed by a sharp decline as traders exited their positions.

According to the report, the pullback and the decline in OI suggest the market is attempting to find balance. Although the movements are reactionary, the current market forces appear to be stabilizing as traders adjust their positioning.

Uncertain outlook

Bitcoin rebounded to the $62,500 price area on Oct. 4, spurred by positive US labor market data. This recovery also supported gains in select altcoins, like Dogwifhat (WIF) and Solana (SOL).

Despite the upward momentum, the Spot Cumulative Volume Delta (CVD) metric remained subdued, suggesting a lack of aggressive buying activity in the spot market. Thus, the outlook for Bitcoin and the broader crypto market remains uncertain, and dependent on several factors.

The report noted that upcoming Consumer Price Index (CPI) inflation data and ongoing geopolitical tensions will play critical roles in shaping Bitcoin’s direction.

Additionally, spot traders’ positioning at the start of the week will be crucial in determining the next movement, as early-week sessions often provide insights into broader market sentiment.

Mentioned in this article Author

Gino Matos Reporter at CryptoSlate

Gino Matos is a law school graduate and a seasoned journalist with six years of experience in the crypto industry. His expertise primarily focuses on the Brazilian blockchain ecosystem and developments in decentralized finance (DeFi).

Editor Editor

Assad Jafri Editor & Reporter at CryptoSlate

AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.

Latest Middle East Stories

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Full your studio with Stagestep’s new ballet barres

Cissy Houston on the Heartbreak of Outliving Daughter Whitney Houston