Bitcoin’s price surge has ignited hopes among investors, but seasoned crypto analysts urge caution amid mounting concerns. As BTC’s value climbs, experienced traders highlight indicators suggesting the rally may not last. They emphasize potential risks and advocate for a prudent approach. Top traders have shared their insights, offering perspectives on Bitcoin price dynamics and the factors behind their cautious stance.
What you'll learn 👉
Mounting Open Interest Raises Concerns
According to crypto trader ZERO IKA, the recent Bitcoin price surge has been accompanied by an increase in open interest (OI) levels. Historically, when OI reaches the 180,000 range, it often precedes a price correction. High funding rates during these periods typically exert selling pressure on the market.
ZERO IKA notes a divergence between the current high OI and relatively low funding rates, suggesting a potential imbalance between buyers and sellers. “It’s likely, therefore, to see a strong impulse to wash out a consistent part of these leverage positions, bringing the OI to more healthy levels,” the trader warns.
Bitcoin (BTC) Price Analysis
Echoing similar concerns, trader Roman highlights the formation of multiple bearish divergences on the 1-hour chart, coupled with low volume on the daily timeframe. “I’m not as confident in this breakout holding unless volume significantly steps up,” Roman cautions, emphasizing the need for robust trading volume to sustain the upward momentum.
Both analysts emphasize the importance of Bitcoin closing above key resistance levels, such as $72,130 (previous swing high) and the $71,000 bearish order block, to solidify the bullish narrative and pave the way for a potential new all-time high.
At press time, BTC trades at $71,078.87 with a daily trading volume of $24,136,866,635.27. This value marks a 0.01% price dip in the last day and a 4.39% rise in the past week.
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While the prospect of new highs excites many investors, the experts remind traders of the risks associated with chasing breakouts prematurely. ZERO IKA warns against “becoming a premium buyer,” advising caution when fomoing (fear of missing out) into positions at elevated price levels.
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