Bitcoin price analysis on June 10, 2019

Cryptocurrency market capitalization has dropped by $ 20 billion this week after the biggest dump in history since the beginning of this year. Bitcoin (BTC) is currently at the support level, but is the open interest index (OI) on BitMEX derivatives plummeting a sign of a reversal?

Bitcoin is at the price of $ 9,600 for the past 24 hours, indicating that the decline may have been slow. Some analysts expect prices to fall below $ 9,300, but at the time of writing this has not happened. This is an important level of support for many analysts.

The big question now is whether this is the bottom of the rally? Some analysis indicates that the relationship between variables is unclear and a strong dump like this week is not anticipated.

The Open Interest index on BitMEX fell below $ 1 billion

Analysts expect a bounce, especially when the OI on BitMEX hits $ 1 billion. But now the index is below 1 billion, showing confidence in a market rally.

Open Interest is the total number of open derivative contracts, including option options and futures, that have not been paid. At the end of January, BeInCrypto said a correction could take place once the index hits a certain threshold.

Since then, Bitcoin has dropped nearly 9% and there is plenty of room to grow again. Another hope is that the $ 9,000 threshold is still in place and if this critical level is unsafe, the altcoin market can bear the risk of erasing the increase from the beginning of the year.

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Liquidity story on BitMEX

Since the beginning of the year, $ 1.5 billion has been liquidated on BitMEX, with an one-hour high of $ 118 million taking place this week.

According to the chart, the liquidated long orders on BitMEX are quite large, but the number has been somewhat reduced, from $ 150 million yesterday to only $ 20 million today.

This could be a signal that the upward momentum is regaining strength. However, Bitcoin still needs to stabilize above $ 9,300 to realize this scenario.

While the global economy is still tense due to the COVID-19 pandemic, it is likely that cryptocurrencies will continue to recover in the coming weeks.

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According to Coin68 / BeInCrypto
Recompiled ToiYeuBitcoin

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