Binance [BNB] platform has experienced a surge in Bitcoin [BTC] Futures contracts prior to important U.S. economic indicators and crypto-related events.
On the 23rd of September, the exchange witnessed a nearly 7% rise in Open Interest (OI), causing BTC Futures to increase from approximately 85K to 90K contracts currently.
An interesting development is the pending release of former Binance CEO Changpeng Zhao (CZ) from prison on the 29th of September.
This development led to increased speculations, particularly on the Binance platform, as traders took on additional risks by betting on the future of BTC, possibly anticipating a surge in BTC price in anticipation of the upcoming US PCE Index (Price Consumption Expenditure) data.
The Soaring Demand from BTC Speculators
Analysts are eagerly anticipating the PCE data to better understand the potential trajectory of the Federal Reserve’s future interest rate cuts, which could potentially influence the behavior of BTC.
Some experts believe that this upcoming event could serve as a trigger for heightened volatility in BTC prices. Therefore, the period from the 27th to the 29th of September might witness increased turbulence for the leading cryptocurrency.
The significant increase in Open Interest signifies a heightened interest in the market and reflects the optimistic outlook of Futures market speculators.
However, this also exposes speculators to the risks of substantial liquidations, which might trigger further price swings and volatility for BTC.
According to Coinglass’s 1-week liquidation overview, critical levels to monitor are situated at $62K and $65K, with short positions increasingly concentrated around the $65K level.
Furthermore, substantial long positions are observed at $62K, as indicated by the vivid orange color on the map.
A notable breakthrough above the $65K level could trigger the liquidation of numerous short positions at that level, leading to significant losses for bears. In a similar scenario, a rapid retest of the $62.2K zone could result in over $800 million in long positions being liquidated.
Understanding Bitcoin’s Price Movement
Bitcoin’s price has remained under the $64,000 mark and failed to surpass the critical 200-day Moving Average (MA), currently standing at $63.9K.
According to trader Daan Crypto, a decisive move above this level and channel could signify a shift in the market structure towards a bullish trend, potentially propelling BTC towards its All-Time High (ATH).
However, an upward surge could trigger a short squeeze, exposing bears to significant losses. The question remains whether these catalysts will be adequate for BTC to overcome the $65K resistance level.