- Bitcoin price jumps to $10,500 in the spot market but back to $10k
- “Retests of $9,500 / $9,800 would be healthy,” says trader Crypto Michaël
- CME Group’s bitcoin futures trading at a premium with open interest surging to $313 million
- Bakkt has made a 2020 record with $36 million in volume and $17 million in open interest
Bitcoin price has made a new local top at $10,500. However, the price couldn’t keep up these levels and dropped back to $10,150. The world’s leading cryptocurrency might have been rejected but this doesn’t mean we are in a bear market. Trader Crypto Michaël said,
And rejected at the range high around $10,400.
Does this mean: bear market? No.
Thinking retests of $9,500 / $9,800 would be healthy, if we get it.
Some consolidation still is heavily needed. Dropdown is bad for some altcoins, but they give a dip opportunity. pic.twitter.com/96i7iP9Uim
— Crypto Michaël (@CryptoMichNL) February 13, 2020
At the time of writing, BTC/USD has been trading at $10,245 in the red while managing the daily trading volume of $1.36 billion on top ten exchanges with real volume.
The flagship cryptocurrency might not have been able to breach the $10,500 level last night but it is not an “overextended chart-wise,” says economist and trader Alex Kruger. However, BitMEX funding is yet again getting on the “extreme” side.
Meanwhile, the fear of PlusToken coins is hovering on the market as they are on the move again. These coins have been split into smaller amounts and reportedly entering in mixers.
PlusToken Ponzi scheme still has about 50k BTC held in combined wallets which could have a negative effect on the market. Analyst Rptr45, however, says, “Dips continue to be an opportunity to accumulate.”
But a dip in Bitcoin price would mean blood for altcoins and “alts need BTC to correct before correcting,” said Kruger.
Futures Market Heating Up
On Feb. 11, CME recorded $824 million in daily volume after January 30’s $846 million.
The cryptocurrency derivatives market is heating up as rival ICE’s Bakkt has made a 2020 record with $36 million in volume and to $17 million in open interest. Futures allow traders to speculate on the price of the underlying asset or hedge their risk.
— Hsaka (@HsakaTrades) February 12, 2020
Open interest on bitcoin futures is, however, highest on derivatives platforms that cater to retail, with BitMEX at $1.5 billion followed by OKEx at $1.4 billion.
With halving coming up in May 2020, it looks like retail investors are FOMO-ing in anticipation of the event while institutional investors’ interest in bitcoin is keeping steady.