‘Violent’ Bitcoin breakout due as BTC open interest nears all-time high
Bitcoin (BTC) stayed rangebound at the Oct. 6 Wall Street open with traders already planning for a “violent” breakout.
Bitcoin whale activity highlights the importance of $19,000
The amount of $20,000 formed a focus for the pair, which meandered in step with consolidating U.S. equities and dollar strength.
With no spot catalyst in sight on short timeframes, on-chain analytics resource Whalemap turned to largescale buy and sell points to sketch out likely support and resistance.
To the downside, $19,174 marked the site of whale buy-ins, suggesting its continued strength as a line in the sand.
Bullish progress, meanwhile, would have to contend with a cloud of resistance at $21,500.
“Don’t be distracted by the noise,” the Whalemap team commented alongside a chart showing the key levels overnight.
As Cointelegraph reported, $19,000 was already on the radar, reflecting the broader aggregate price sold for the BTC supply — Bitcoin’s so-called “investor cost basis.”
Elsewhere, others targeted $21,000 as a likely turning point should a spate of bullishness kick in.
Futures open interest approaches a record 604,000 BTC
On longer timeframes, meanwhile, popular trading account Daan Crypto Trades flagged an impending triangle breakout for BTC/USD after weeks of comparative sideways trading.
On derivatives markets, traders were steadily adding dry powder, which could fuel a “violent” end to the status quo.
“As bitcoin consolidates around $20,000, BTC denominated futures open interest sits just below all time highs at 604k BTC,” Dylan LeClair, senior analyst at UTXO Management wrote in a dedicated thread on the day.
“Whether up or down, when bitcoin breaks out of its current range, it’ll likely be a violent move.”
LeClair noted that the all-time high in open interest was mainly collateralized by stablecoins, marking a distinct change from the heavy upside volatility seen in April 2021, when BTC/USD hit $58,000.
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