Trending Bitcoin News and Market Sentiment February 3rd, 2020: BitMEX, OKEx Hits $1B Open Interest to Open Way for Volatility as Bitcoin Golden Cross Appears Amid China Panic

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Bitcoin
  • Bitcoin spikes to a daily high of USD 9,603 so far
  • BitMEX and OKEx open interest stirs to above USD 1 billion, triggering signals of coming volatility
  • Bitcoin’s long-awaited golden cross could be on the cards amid continued health fears in China

 

After a mighty spike to the current daily high of USD 9,603 (CoinDesk) earlier today at the height of Asian morning trading, Bitcoin dipped to current levels above USD 9,300, but there is no sign that consolidation has stopped. The bulls still seem in firm control, and the fact that ETH is still keeping USD 190 levels, with most other altcoins also in firm green territory, suggests that Europe is also keen to ensure the Monday numbers look good for a strong February push upwards.

One big item of news today will be that open interest on global Bitcoin derivatives and exchange platform BitMEX combined with that of OKEx is now worth more than USD 1 billion after spiking more than 60% since the start of the year.

According to crypto data analysis from Skew Markets, this means that across all major platforms offering Bitcoin futures, open interest has now grown to over USD 4 billion. Deribit, another data analytics firm, also confirmed this data but with even more bullish numbers, saying that monthly growth on Bitcoin futures options turnover had exceeded 70%.

It is of little surprise that all of this interest has converged, especially since Bitcoin has grown over a third in price since the start of 2020, and this means that global records for futures trading on the world’s most popular digital asset could be toppled in weeks, especially seeing how a single day volume of USD 25 billion was possible in January.

While this is good news for the Bitcoin bulls, analysts suggest preparing for an extended period of heightened volatility, with markets now edging towards USD 10,000. A Cointelegraph market analyst, Scott Melker — better known as Wolf of All Streets — said yesterday:

“With Bitmex Open Interest hitting a billion, volatility is almost assuredly coming. We aren’t staying at 9400 for long. The next move should be significant and come relatively soon.”

A lot of eyes will be on Bitcoin these next few weeks, as the countdown towards the next Bitcoin halving gains more followers. With just fewer than 100 days to that halving, can we really see a USD 100,000 figure coming as some bulls have predicted?

Well, if this following technical analysis is correct, then we have yet another strong sign that this positive upturn is on its way, and we’re talking about the much-welcome Bitcoin golden cross that is appearing now on the charts.

When correlating data taken from aggregators Coin360 and putting it against Cointelegraph Markets, we see that after the spike we talked about earlier today, we now sit in a rather stable region above USD 9,300 and closing in on USD 9,400. And this takes place when you cross Bitcoin’s 50-day moving average (50-MA) with its 100-MA, whereby averages have crossed over, signally a bullish sign with the Golden Cross.

All this against a background of Coronavirus fears in China which have definitely not abated, with the stock markets, viewed through the Shanghai Composite Index, or SSE opening on Monday on an almost 8% immediate loss as economic fears prompted more sell offs from traditional investors.

And financially, the People’s Bank of China has now opted to pump the market full of cash: CNY 1.2 trillion worth USD 170.9 billion. Of course, this doesn’t necessarily add up to a crypto rally. Analysts still can’t decide if the coronavirus fears have impacted Bitcoin markets, but in any case, there hasn’t been such a large-scale panic since the UN declared a global health alert.

Kenetic Capital managing partner Jehan Chu told Bloomberg today:

“As trust in global institutions and markets continues to deteriorate, we will see highly mobile digital assets like Bitcoin explode in value.”

 

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The post Trending Bitcoin News and Market Sentiment February 3rd, 2020: BitMEX, OKEx Hits $1B Open Interest to Open Way for Volatility as Bitcoin Golden Cross Appears Amid China Panic appeared first on BitcoinNews.com.



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