Bitcoin continued its streak of upward momentum, reaching a new all-time high on November 13 and sparking a flurry of activity across the cryptocurrency market.
In particular, the futures market was greatly affected, with trading volume for the BTC/USDT pair rising. This increase has highlighted an intense period of market participation, with leading exchanges, especially Binance, at the forefront of this trading frenzy.
Record trading volumes and market volatility risks
CryptoQuant analyst known as Crazzyblockk participated Visions In the phenomenon of trading frenzy, noting that the Bitcoin futures market has become “exceptionally overheated.”
According to a recent analyst post on the CryptoQuant QuickTake platform, trading volume has risen across spot and futures markets on major centralized exchanges.
Cumulative trading volume of BTC/USDT across all major platforms has reached nearly $129 billion, with Binance contributing a significant $50.2 billion to this number.
The surge in futures trading activity has raised important questions about market stability and the potential for increased volatility. As Crazzyblockk explains, when the Bitcoin derivatives market experiences rapid growth, especially in the futures sector, there is often a tendency for increased market volatility.
CryptoQuant analyst added:
While this can boost demand briefly, it often results in minor pullbacks and sharp fluctuations.
The analyst stressed that the “hectic” market situation calls for caution from investors and traders. In his words:
Given the current climate, it would be wise for investors and traders to exercise caution, refrain from rash speculation, and wait for a period of price stability before making further moves.
Predictions on Bitcoin
Bitcoin is facing a notable price decline, falling 6.1% in the past day to its current trading price of $87,977. This continued decline in price comes after it recently reached an all-time high above $93,000, as recorded yesterday.
With Bitcoin back to trading below the $88,000 area, the asset is now down 5.9% away from its peak. While the reason behind this ongoing correction is uncertain, popular cryptocurrency analyst Ali recently highlighted an interesting Bitcoin trend behind the scenes.
In a mail Uploaded earlier today on Ali warned to “stay alert and proceed with caution.”
Meanwhile, another analyst known as Javon Marks also weighed in male In one of his recent posts, while there is still more bullish momentum with Bitcoin peaking yesterday, “the target now remains at $116,652 which is expected to come at greater speeds and with more force than the first.”
Some of the greatest, most accurate and streamlined analyzes you’re ever likely to see #Bitcoin (BTC) and cryptocurrencies
! In December 2022 @ ≈ $16,782, we noticed bullish signals as well as stabilization of the price breakout which pointed us to a target of $67,559 which was expired at that time… https://t.co/qrJv2WPwnG pic.twitter.com/7ZkeUV13UY
– Javon
Marx (@JavonTM1) November 13, 2024
Featured image created with DALL-E, chart from TradingView