Bitcoin futures market buy pressure has climbed to 4.9, its highest reading since Aug. 19, according to crypto analyst @AxelAdlerJr. He said open interest rose by nearly 9,000 BTC over the past 24 hours, a sign that traders are building positions again. The indicator measures the balance between buying and selling pressure, weighted by changes in open interest. A 4.9 reading means the pressure accumulated over the past 12 hours stands nearly five standard deviations above the average level seen over the past week. Adler said the spike may reflect a mix of new long positioning and short covering. He added that if Bitcoin can stay above $85,000 even as upside momentum slows, the current rally may continue. The main risk for fresh long positions, he said, would be a drop below $83,000, where liquidations could speed up the decline.
Bitcoin futures market buy pressure has risen to 4.9, the highest level since Aug. 19, according to crypto analyst @AxelAdlerJr on Oct. 2.
Open interest increased by nearly 9,000 BTC over the past 24 hours, which he said shows traders are starting to build positions again. The buy pressure indicator tracks the balance between buying and selling in the market and weights that reading by the scale of open interest changes. A reading of 4.9 means the pressure accumulated over the past 12 hours is nearly five standard deviations above the average seen over the last week.
Adler said the spike may be tied to long positions being opened and short positions being closed. In his view, if Bitcoin holds above $85,000 even as upward momentum weakens, the current advance may continue. He also said the main risk for newly opened longs is a drop below $83,000, as position unwinding could accelerate the downside move.
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