Bitcoin futures investors at all-time high, but identity has changed

The amount of money invested in Bitcoin futures contracts is nearly at an all-time high, but the identity of the investors has changed dramatically from last year, new data shows.

It is evident that traders are already planning for a breakout, which is likely to be quite violent. Bitcoin has remained relatively stable over the past few days, but it is clear that this is only temporary. Once the breakout occurs, it is likely that BTC will see significant price movements.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
The BTC/USD 1-hour candle chart looks promising, with the price currently hovering around the $9,000 mark.

Bitcoin whale activity increases as price nears $19,000.

The price of Bitcoin fluctuated by only a few hundred dollars today, according to data from Cointelegraph Markets Pro and TradingView. This relatively small price movement could indicate that the market is stabilizing after a period of volatility.

The $20,000 level has been a key focus for the pair, which has consolidated in step with U.S. equities and dollar strength.

It's unclear where the market will turn next, but on-chain analytics resource Whalemap is looking at large-scale buy and sell points to identify likely support and resistance levels. This could give traders some guidance as to where the market is headed in the short-term.

It is clear that the market remains bullish on Bitcoin, with $19,174 marking the site of whale buy-ins. This suggests that the market views Bitcoin as a valuable asset, and one that is likely to continue to increase in value.

Looking at the current market trend, it seems that $21,500 will be a tough resistance level for bulls to break through. However, if they are able to do so, it could signal a major shift in the market.

The Whalemap team has urged investors not to be distracted by the noise in the markets overnight, with a chart showing the key levels to watch. The team says that the main levels to watch are the $11,000 support level and the $10,500 resistance level.

BTC/USD annotated chart. Source: Whalemap/ Twitter
The BTC/USD chart is looking bullish in the short-term, with a potential for further upside in the medium-term. The key support levels to watch are $9,000 and $8,500.

The market is eagerly awaiting Bitcoin's next move as the "investor cost basis" nears $19,000. Will the cryptocurrency break through this key resistance level or will it pull back in the coming days?

It's clear that many traders are eyeing the $21,000 level as a potential turning point for Bitcoin's price. If a sustained bullish trend starts to emerge, we could see the cryptocurrency push past this key resistance level and continue its upwards momentum.

Futures open interest approaches record high of 604,000 BTC

On longer timeframes, BTC/USD is currently trading sideways within a triangle pattern. However, according to popular trading account Daan Crypto Trades, an upcoming breakout is imminent. This could signal a move higher for the pair in the near-term, though it remains to be seen where prices will head in the longer-term.

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Bitcoin's price has been on a roller coaster ride over the past week, and it looks like it's going to continue for the next week. So, what do you need to know?

BTC/USD annotated chart. Source: Daan Crypto Trades/ Twitter
The BTC/USD chart is annotated with several key levels of support and resistance. The most important level to watch is the $10,000 level, which has been a key level of support and resistance for the past few months.

On derivatives markets, traders are steadily adding dry powder which could fuel a "violent" end to the status quo. This could mean big changes in the market landscape, and possibly some serious profits for those who are prepared.

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. This is a positive sign for the future of bitcoin, as it shows that investors are still confident in the cryptocurrency despite its recent price consolidation.

“Whether up or down, when bitcoin breaks out of its current range, it'll likely be a violent move.”

It is interesting to see that the all-time high in open interest was mainly collateralized by stablecoins. This marks a distinct change from the heavy upside volatility seen in April 2021, when BTC/USD hit $58,000. It will be interesting to see how this change affects the market in the future.

Bitcoin futures open interest chart. Source: Dylan LeClair/ Twitter
Bitcoin futures open interest chart. Source: Dylan LeClair/ Twitter The open interest chart for Bitcoin futures contracts shows a clear increase in recent months, indicating that more and more traders are taking a position in the market.