Bitcoin Faces Potential Volatility as CME Bitcoin Futures Open Interest Hits Record $6.8 Billion

Bitcoin (BTC) is consolidating around $52,000, with bulls benefiting from weekend trading. The cryptocurrency experienced a dip to $50,680 on Bitstamp before rebounding by nearly $1,500. Notably, spot buying has slowed, and trader behavior shifted towards “mostly taker driven dips & bounces.”

However, CME Group’s Bitcoin futures markets registered a record open interest of $6.8 billion, indicating potential upcoming volatility. Despite the surge in open interest, traders believe the recent +100% rally since October has been healthy in terms of leverage. The funding rates have remained mostly neutral, and open interest denominated in BTC is lower, although its USD value increased as BTC’s value rose.

Key levels to watch include the $51,500 21-period exponential moving average and the $52,000 – $53,000 range for spot flows. Bulls need to maintain upward momentum in Bitcoin’s relative strength index (RSI) on 4-hour timeframes for a positive weekly close. A weekly close above $49,000 is considered bullish, while a close below may bring $44,000 into play.

Note: This news was written with the help of AI and human, we always check our sources carefully before publishing a news