NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin, XRP, Ethereum Dip Post Fed's Rate Cut: What’s Next For Crypto?
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin, XRP, Ethereum Dip Post Fed's Rate Cut: What’s Next For Crypto?

Quant Explains How Bitcoin Derivatives Data Can Be Used For Trading

Keshav Verma
Keshav Verma
1 year ago
3 mins read
Bitcoin

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

A quant has explained how the data of the Bitcoin derivatives indicators like open interest and liquidations can be leveraged as a short-term trading tool.

Bitcoin Derivatives Market Data As A Short-Term Trading Tool

As explained by an analyst in a CryptoQuant post, yesterday’s price action was a good example of how the futures market influences the value of the cryptocurrency. There are two relevant indicators here. The first is the “open interest,” which measures the total amount of Bitcoin futures contracts that are currently open on all derivative exchanges.

When the value of this metric trends up, it means investors are opening up more contracts on the futures market currently. Since more contracts generally accompany increased leverage as well, the open interest going up can cause a higher amount of volatility for the BTC price.

On the other hand, decreasing values of the indicators imply holders are closing up their contracts or getting forcefully liquidated right now. As this naturally leads to lower leverage in the market, BTC could follow up with less volatility.

The other metric of interest here is the “long/short liquidations,” which measures the total amount of long/short contracts (in USD) that are being forcefully closed off by exchanges as a result of investors accumulating losses that have eaten away a specific percentage of their collateral.

Related Reading

Here’s What’s Needed For The Bitcoin Rally To Resume

1 year ago

Now, here is a chart that shows the zoomed-in trend of the Bitcoin open interest and futures liquidations, as well as the BTC price, during the action seen yesterday:

Bitcoin Open Interest

How the activity in the futures market has resulted in the price action seen yesterday | Source: CryptoQuant

In the above graph, the quant has marked how the Bitcoin open interest and futures liquidations (both long and short) related to the price of the cryptocurrency through each portion of yesterday’s burst of price action.

At first, the price was going down, but the open interest was increasing in value, suggesting that short positions were piling up on the market. Then, in a sudden upwards price move, a large amount of these shorts were liquidated, which only fueled the price surge further.

Related Reading

Ethereum

Ethereum Exchange Supply Has Fallen 37% Post Merge: Santiment

2 years ago

Naturally, the open interest declined as this move took place, because of all the short liquidations. After this steep climb, the price fell back to sideways movement, but the open interest started climbing. The analyst notes that this suggests investors had begun to open up long positions because of FOMO induced by the sudden rise.

Finally, the Bitcoin price reversed its direction, resulting in these now piled-up longs getting liquidated in the same way as shorts did earlier, which again only amplified the move and caused BTC to see an extended drawdown.

BTC Price

At the time of writing, Bitcoin is trading around $22,100, down 4% in the last week.

Bitcoin Price Chart

BTC continues to be stuck in a range | Source: BTCUSD on TradingView
Featured image from Traxer on Unsplash.com, charts from TradingView.com, CryptoQuant.com
Tweet123Share196ShareSend
Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Read more

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

weex-new-user-welcome-up-to-800-usdt-futures-bonus-tw

加密貨幣交易所WEEX推出新用戶專屬迎新活動 最高可得800 USDT期貨獎金

全球加密貨幣交易所WEEX正式啟動全新「Exclusive Welcome Bonus」迎新活動,為首次註冊用戶提供高達800 USDT的期貨獎金與價值10至100 USDT的手續費折抵券。這項活動將...

Kelvin Lee 50 minutes ago
Crypto whale verkoopt BTC en ETH voor SOL - wat gaat Solana doen in November?

Crypto whale verkoopt BTC en ETH voor SOL – wat gaat Solana doen in November?

Een crypto whale sloot recent zijn BTC en ETH posities om zwaar in te zetten op de Solana koers. Volgens...

Lars Diederiksen 1 hour ago
Bitcoin price crash news

Bitcoin Crash To $87,600 Looms If This Support Snaps, Warns Veteran Analyst

Bitcoin is sitting on a technical ledge that could decide whether price makes a new all-time high or unwinds sharply...

Jake Simmons 1 hour ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

cz-back-to-pumping-meme-coins-new-pup-could-be-next

趙長鵬重返市場推動迷因幣熱潮——這隻新狗幣或將成為下一個焦點

Ada Chui 33 minutes ago
ECB

ECB Pushes For 2029 CBDC Launch — The Digital Euro Era Nears

Christian Encila 34 minutes ago

Russie et cryptos : légalisation ciblée pour le commerce extérieur

evanss 40 minutes ago

Premium Sponsors

Press Releases

  • Meme coin tiềm năng mới Maxi Doge

    Những Đồng Coin Tiềm Năng: Maxi Doge (MAXI) Dẫn...

    10 seconds ago
  • Các Đồng Coin Tiềm Năng

    Những Altcoin Hàng Đầu Đáng Theo Dõi Khi Cá Voi...

    20 minutes ago
  • ETF需要と価格上昇トレンドが示す次の展開

    ビットコイン...

    2 hours ago
  • Shibarium低迷と価格サポートラインの行方

    シバコイン...

    2 hours ago
  • パイネットワーク...

    3 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.