Bitcoin’s price touched sub-$9,000 levels in the early trading hours on Monday June 15, 2020 setting a bearish tone in the market. Despite climbing back to a shaky support level of $9,136 USD as at time of writing, one crypto analyst believes the markets are soon turning bullish. The indicator? BitFinex’s BTCUSD order book showing the live trades waiting to be executed by the exchange.
BitFinex receives huge Buy orders on its order book
An observation by CIO of Atlanta Digital Currency Fund, Alistair Milne, showed that large buying bids on BitFinex were filling up the exchange’s order book on Sunday at around noon GMT. According to the screenshot shared, the order book was filled with 6,130 BTC buy orders (8,700 to $9,400) compared to the 2,800 sell orders ($9,400 to $10,100).
Bids are stacked on Bitfinex again … pic.twitter.com/K5oVbBjGX2
— Alistair Milne (@alistairmilne) June 14, 2020
This gives off a bullish narrative on BTC’s price as more traders wish to buy BTC than those willing to sell. However, there remains questions on the near term price dynamics of BTC after the successive hours saw the price of BTC dip below $9,000 for the first time in three weeks.
The dip in BTC’s price caused over $30 million in liquidations in the past day on BitMEX and a further 78 BTC (~$720,000). According to Datamish, a cryptocurrency data aggregator, a total of $32.2 million longs and a further half a million USD in shorts were liquidated as of June 15, 2020 11.21 AM GMT.
Institutions in play, price still delays
It is currently very difficult to predict with certainty the price movement of BTC in the coming days. However, the rejection of BTC at $10,500 earlier in the month set in a bearish feel for BTC in the market. Recently, BEG covered an analyst who says a move towards the $5500-$6000 region is possible given the rejection of this key resistance level.
However, the fundamentals give a long term bullish stance in BTCUSD market with institutional investment growing in the field. Since the start of 2020, total open interest in BTC options and futures has been on a spike only seeing a blip during the March 12th crash.
Notwithstanding, Skew data shows that CME Group futures, which mainly caters for companies and institutions, received over $300 million in call options compared to the $6 million in put options on its platform. This means an increasing interest in institutions buying rather than selling BTC in the near term.