Author: dfmines

How often has the ethereum network gone down or run into problems (besides gas fees and theDAO)? As much as people like to compare it to SOL, I've read in an article that it has had some network issues in the past but I don't know where to look for where this happened https://river.com/learn/bitcoin-vs-ethereum/ (Keep…
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On-chain data shows Bitcoin open interest has reached dangerously high values, a sign that a leverage flush may be coming soon. Bitcoin Open Interest Rises To High Values As pointed out by an analyst in a CryptoQuant post, the BTC open interest has now reached values where mass liquidations have taken place in the past. The “open interest” is an indicator that measures the total amount of BTC futures positions currently open on derivatives exchanges. The metric accounts for both long and short positions. When the value of the metric is low, it means investors aren’t using much leverage right now. Such values usually result in low volatility in the price of Bitcoin. On the other hand, high values of the indicator suggest that futures contract users are currently using a high amount of leverage. This situation can lead to high volatility in the market as big price swings can result in a liquidation squeeze. Related Reading | Exchange Whale Ratio Suggests Bitcoin Dump Incoming Now, here is a chart that shows the trend in the BTC open interest over the past year: The indicator’s value seems to be on the rise recently | Source: CryptoQuant As you can see in the above graph, value of the Bitcoin open interest looks to be climbing up in the last few weeks. The quant has marked in the chart the previous times the indicator showed similarly high values. It’s clear that at some point after reaching these values, the metric has had a sharp decline. The sudden decrease in the open interest implies that a leverage flush took place at those times. Such a squeeze happens when liquidations cascade together in response to a swing in the price of Bitcoin. During such leverage flush incidents in the period of the chart, the price of the crypto also seems to have crashed alongside it. This means that those previous liquidations mostly involved long positions. Related Reading | Why Did China Ban Bitcoin Mining? Here Are The Seven Leading Theories Since the market seems to be overleveraged right now as hinted by the open interest values, it’s possible a similar liquidation event could take place in the near future. BTC Price At the time of writing, Bitcoin’s price floats around $46.7k, down 5% in the last seven days. Over the past month, the coin has lost 12% in value. The below chart shows the trend in the price of BTC over the last five days. BTC’s price seems to have struggled in the last few days | Source: BTCUSD on TradingView In the past week, Bitcoin seems to have again started consolidating in the $45k to $50k range. It’s unclear at the moment when the coin may escape this sideways movement, but if the open interest is anything to go by, a liquidation event may happen soon. Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com

ID, PAC and RVN lead the altcoin breakout, while Bitcoin price targets new lows below $46,000.

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Less than 20 days ago, the German multinational sneaker and sportswear corporation Adidas launched the company’s Adidas Originals non-fungible token (NFT) collection and since then the NFT compilation has surged into the top 50 NFT collections in terms of sales. Adidas NFT Collection Sees Significant Demand in Less Than 20 Days At the end of […]

Hello fellow crypto enjoyers. We all know the rules of crypto investments. One of those rules, for the new people around here, is « You shall only invest what you are not afraid to loose ». But realistically, we all know there’s a lot of people that invest a lot more than what they can…
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The tool is written in Python and aims to solve, what I consider to be two main issues when DCAing: It enables you to select any number of coins and the interval you wish to DCA automatically It provides detailed performance reporting for each coin DCAd. I always found it strange that some exchanges don't…
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ZK rollup solution to reduce the gas fees and improve transactions is something that I'm really bullish on. I've been in MATIC since it was worth only a quarter of a dollar and I support the project wholeheartedly. Right now, MATIC Polygon is sweating like a pig on a roast, because one one small blockchain…
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Bitcoin started 2022 on a different trajectory than the one expected by most traders. Moving sideways for the majority of Q4 last year, the first crypto by market cap seems proposed to more volatility in either direction. Related Reading | Bitcoin Breaks $51k Again As 20k BTC Flows Out Of Exchanges As of press time, Bitcoin trades at $46,803 with sideways movement in the last 24 hours. BTC’s price returned to its current levels after a rejection around the $50,000 area as 2021 came to an end. Data from Material Indicators shows strong support below Bitcoin’s current price as $10 million in bids order sit around $45,000 with an additional $36 million distribute between $44,000, $43,000, and $42,000. These levels could become the bulls’ final line of defense in case of further downside. Above Bitcoin’s current price there is no significant resistance until $59,000 which records $13 million in ask orders. This doesn’t imply BTC will move straight in that direction as buyers still need to display conviction and hold the aforementioned support levels. According to data from Arcane Research, the Bitcoin market for the derivatives sector has been reset, as $5.8 billion in BTC options expired on December 31st. This represents one of the largest expiry events which led to a 47.8% decline in Open Interest (OI) for this sector. Arcane Research claimed the following: This (decline in OI) could be circumstantial, but it could also be caused by the market structure with options expiries as well as futures expiry (…) The research firm also claimed that most of the options with far out of the money bullish strikes ended 2021 “worthless”. The options market has been a great part of the dynamics for the BTC’s price action in the last 2 years and, if history repeats, could hint at what’s next for the cryptocurrency in Q1, 2022. Arcane Research said: The options market could potentially contribute to anchoring the BTC price. In January, February, March, April, October, and November, bitcoin saw strong returns in the first half of the expiry period and negative returns in the second period. New Year, New Market Dynamics For Bitcoin? The Price Of Adoption Despite the support below, Bitcoin could attempt to fill the wicked at $42,000 printed on December 3rd. Analyst Justin Bennet claimed that BTC has historically dipped into similar downside movements before resuming its bullish momentum. Bennet believes BTC’s price action can no longer be classified as only bull v. bear market. On the contrary, the analyst thinks there are more “gray areas” due to the participation of new players and institutions. Related Reading | Market Gets Cozy With Bitcoin Trapped? Why BTC Is Gearing Up For A Short Squeeze John Bollinger, the creator of the Bollinger Bands indicator, seems to share a similar position on the potential changes experienced by the BTC market. Via Twitter, Bollinger said: Some thoughts on bitcoin. You have to be careful what you wish for: Everyone wanted wide adoption, listed futures, options, ETFs, etc. Well, you got all that and more including burgeoning regulation. The rub is that these things have totally changed the character of trading.