Bitcoin has continued its bullish momentum streak, hitting a new all-time high on November 13 and sparking a flurry of activity in the crypto market.
The futures market in particular has been significantly affected, with a sharp increase in trading volume for the BTC/USDT pair. This surge has highlighted an intense period of market engagement, with leading exchanges, most notably Binance, at the forefront of this trading frenzy.
Record trading volumes and market volatility risks
A CryptoQuant analyst known as Crazzyblockk shared this insights in the trading frenzy phenomenon, noting that the Bitcoin futures market has become “exceptionally overheated.”
According to the analyst’s recent note on the CryptoQuant QuickTake platform, trading volume has surged in both the spot and futures markets on major centralized exchanges.
The cumulative trading volume for BTC/USDT across all major platforms has reached approximately $129 billion, with Binance contributing a significant $50.2 billion to this figure.
The surge in futures trading has raised important questions about market stability and the potential for increased volatility. As Crazzyblockk explained: When the Bitcoin derivatives market experiences rapid growth, especially in the futures segment, there is often a tendency towards increased market fluctuations.
The CryptoQuant analyst added:
While this can boost demand briefly, it often leads to small setbacks and sharp fluctuations.
The analyst emphasized that the “overheated” state of the market warrants caution among investors and traders. In his words:
Given the current environment, investors and traders would be wise to exercise caution, refrain from hasty speculation and wait for a period of price stability before taking further steps.
Bitcoin Outlook
Bitcoin is facing a noticeable price drop, having fallen 6.1% over the past day to a current trading price of $87,977. This continued price decline comes after the stock recently hit an all-time high above $93,000, as recorded yesterday.
With BTC trading below $88,000 again, the asset is now down 5.9% from its peak. While the reason behind this ongoing correction is not certain, renowned crypto analyst Ali recently highlighted an interesting BTC trend behind the scenes.
In one after Uploaded earlier today on Ali warned to “stay alert and proceed with caution.”
Meanwhile, another analyst known as Javon Marks has done just that noted in one of his recent posts that while there is still further upside momentum as Bitcoin peaked yesterday, “the target is still at $116,652 now, which is expected to come at even greater speeds and with more strength than the first.”
Some of the largest, most accurate and simplistic analyzes you are likely to encounter #Bitcoin (BTC) and Crypto
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December 2022 @ ≈$16,782, we noticed bullish signals as well as a price breakout that signaled us the $67,559 target, which at that time was over… https://t.co/qrJv2WPwnG pic.twitter.com/7ZkeUV13UY
— JAVON
BRANDS (@JavonTM1) November 13, 2024
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Credit : www.newsbtc.com
