Bitcoin’s trend this week has been strong, with a potential surge toward the $70,000 mark. However, analysts point out that data on open contracts and loans in the market indicate that a pullback could happen at any time.
Summary:
Bitcoin broke through the $68,000 mark on October 16th, reaching a new high of $68,422, the highest since July 30th. Currently, after a brief correction, Bitcoin has once again surpassed $68,000, and during the early morning hours in Taiwan, it briefly exceeded the $69,000 mark. It has now temporarily fallen back to $68,395. This seems to indicate a return of the bull market, but analysts have issued warnings.
Analyst James Check from Glassnode warns investors that the current market sentiment is greedy, and Bitcoin futures open contracts have reached a new high, suggesting that a market pullback could happen at any time. At the same time, trader Rekt Capital states that the current upward momentum of Bitcoin does not necessarily mean a breakthrough resistance and an imminent surge. From a technical perspective, Bitcoin is still attempting to break its downward trend since March. It has made two attempts in the past few months but has ultimately failed to break through. Whether it will finally break this key resistance level remains to be seen.
Another noteworthy data point is the increase in high-risk crypto loans to the highest level in two years, reaching $55 million, according to IntoTheBlock data in the decentralized lending market. IntoTheBlock comments that this could indicate potential liquidation chain reactions if the market undergoes changes.
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