Fuel for a broader Bitcoin rally? BTC dip fills futures gap, liquidating $1 billion

Chart https://t.co/6gPk3Qbg6j pic.twitter.com/j1wDNtqNak— CryptoQuant.com (@cryptoquant_com) February 22, 2021
It is most likely that some whales took revenue on their positions, triggering the market to dip dramatically in a short period.However, whales selling large quantities of Bitcoin can trigger a larger correction than usual since it leads to cascading liquidations in the futures market.Many overleveraged longs can get liquidated consecutively, enhancing the effect of the whale-induced sell-off.” Title: Fuel for a broader Bitcoin rally? BTC dip fills futures gap, liquidating $1 billionSourced From: cointelegraph.com/news/fuel-for-a-broader-bitcoin-rally-btc-dip-fills-futures-gap-liquidating-1-billionPublished Date: Mon, 22 Feb 2021 12:03:03 +0000

A CME gap kinds when the cost of Bitcoin moves either up or down after the CME closes during the weekend or vacations in the U.S. Unlike many cryptocurrency exchanges, considering that the CME Bitcoin futures exchange is not open at all times, a gap forms between CME and numerous Bitcoin trading platforms.BTC/ USDT 4-hour cost chart (Binance). Source: TradingView.comWhy is the CME Bitcoin gap significant?The CME gap is often considered an essential gap to fill for the Bitcoin rally to continue in the near term.For instance, the latest gap formed when the price of Bitcoin went beyond $58,000 throughout significant cryptocurrency exchanges, while CMEs Bitcoin futures market closed for 2 days.As such, a space at $55,504 emerged, which closed as the rate of Bitcoin fell steeply after the brand-new weekly candle opened. This is 10 to 15-fold greater than the default 0.01% funding rate.Although the funding rate of Bitcoin has actually remained relatively high throughout the bull cycle, a 0.15% financing rate shows that the market is incredibly overcrowded.The combination of a high Bitcoin futures funding rate, the presence of a CME gap, and whales depositing to significant U.S. exchanges likely fueled the drop.Large deposits identified on GeminiPrior to the pullback, CryptoQuant found that big BTC deposits were transferred to Gemini, one of the leading U.S. cryptocurrency exchanges.Before the dip, there were considerable $BTC inflows into all exchanges, primarily Gemini.

A crucial Chicago Mercantile Exchange (CME) Bitcoin (BTC) futures space closed as BTC/USD suddenly dropped listed below $54,000 on Feb. 22. A CME gap kinds when the price of Bitcoin relocations either up or down after the CME closes during the weekend or vacations in the U.S. Unlike a lot of cryptocurrency exchanges, considering that the CME Bitcoin futures exchange is not open at all times, a gap kinds in between CME and many Bitcoin trading platforms.BTC/ USDT 4-hour rate chart (Binance). Source: TradingView.comWhy is the CME Bitcoin gap significant?The CME gap is in some cases thought about a crucial space to fill for the Bitcoin rally to continue in the near term.For circumstances, the current space formed when the rate of Bitcoin exceeded $58,000 across major cryptocurrency exchanges, while CMEs Bitcoin futures market closed for two days.As such, a gap at $55,504 emerged, which closed as the cost of Bitcoin fell steeply after the new weekly candle opened. #Bitcoin CME space closed. https://t.co/JygwzJwClk pic.twitter.com/XYkPgKuBjp— Fomocap trades (@Workedia) February 22, 2021
Bitcoin has a propensity to sharply correct in a short duration after a brand-new weekly candle opens. This flushes out overleveraged longs and brings some balance into the market.Prior to the weekly candle open, the financing rate of the Bitcoin futures market ranged in between 0.1% to 0.15%. This is 10 to 15-fold higher than the default 0.01% financing rate.Although the funding rate of Bitcoin has actually stayed relatively high throughout the bull cycle, a 0.15% financing rate shows that the marketplace is exceptionally overcrowded.The combination of a high Bitcoin futures funding rate, the presence of a CME space, and whales transferring to significant U.S. exchanges most likely fueled the drop.Large deposits identified on GeminiPrior to the pullback, CryptoQuant discovered that big BTC deposits were moved to Gemini, one of the leading U.S. cryptocurrency exchanges.Before the dip, there were significant $BTC inflows into all exchanges, mainly Gemini.

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Jeannine Cruz– Earnings I am known as Jeannine Cruz, I am a writer and an industrialist by profession. My age is 32 years. My aim is to gather the attention of the targeted audience without being boring and unexciting. I like to utilize the free time in writing my views and thoughts for my book lovers or readers. My most preferred articles are usually about finance and business; however, I have written various topics in my articles. I do not have a specific genre. I get very creative when I have to express myself, I often sing, write or draw to portray my feelings. When it comes to my free time or you can say ‘ME-TIME’, I love to play with my cat, sleep an extra hour, or play my favorite video games.

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