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    Why are Bitcoin traders worried about a ‘painful’ BTC price dip?

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    Bitcoin’s recent 11% leap has sparked debate, with some speculating a dip could be on the horizon. Trader TheKingfisher talks about the financial risks of Bitcoin’s market volatility, predicting a potential wipeout for those heavily invested. Analyst Michael van de Poppe, however, believes Bitcoin will follow usual patterns and rebound after dipping. Other factors considered include recent spikes in Bitcoin Futures, causing worry about a pull-back affecting long positions. While the increase in open interest has some anticipating a Bitcoin plummet, others like anonymous trader, “Wicked”, believe it signifies bullish outcomes for Bitcoin.

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    Check this out – Bitcoin’s (BTC) recent jump of 11% in a week got everyone talking – traders were wondering if the market was due for another dip before BTC gets back on track towards record-breaking highs.

    So, what’s the deal with this possible dip? “TheKingfisher”, a trader who isn’t keen on sharing their real name, thinks it’s got to do with an earlier hiccup on July 29, when Bitcoin prices crashed hard to 49,000 bucks in just five days. According to him, the sudden ups and downs in the Bitcoin market are making it pricier to hedge and leverage your investments, especially as the bumps in the market keep coming.

    As an example, he mentions those who took a serious punt with 50x leverage – even these high-rollers haven’t lost their shirts yet. TheKingfisher reckons there’s around a 62% chance of them getting wiped out within the day, especially if prices keep steady around the 67,350 mark.

    The sales could kick into high gear too. TheKingfisher highlights how fast the pool of available money is growing. When it does, there could be a dramatic exit from the market.

    Over to Michael van de Poppe, head honcho at MN Capital, who shares similar views. He reckons Bitcoin is following its usual pattern from the last seven months. Recently, the cryptocurrency made a wild charge above $68,000, with the bulls snapping up the supply-side liquidity at around $65,000.

    According to him, Bitcoin prices might drop to pick up the demand-side liquidity at around $64,130 before charging upwards once again. His prediction? “We’ll correct a little bit, the last dip, and then, from next week, we’ll reach for new highs.”

    Meanwhile, the recent spike in Bitcoin Futures has got some industry folks nervous about a pull-back flushing out long positions. On October 16, the CME Bitcoin futures hit its record high with 179,745 BTC. That’s a whopping $1.2 billion, by the way. This was tracked by Vetle Lunde, Senior analyst at K33 Research..

    However, not everyone’s convinced that an increase in open interest (OI; in simple terms, more people showing an interest in buying something) means Bitcoin prices are about to crash. For instance, an anonymous trader named “Wicked” thinks this rise in OI on CME Bitcoin futures to record levels spells more good news for Bitcoin.

    Even the folks at CoinGlass, a crypto futures and information platform, think this surge in Bitcoin futures OI indicates a big price movement ahead.

    In this unpredictable world of Bitcoin, the only sure thing is – always, always do your own research before investing.

    Source: Cointelegraph

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