bitcoin has continued its streak of bullish momentum, hitting a new all-time high on November 13 and sparking a wave of activity across the crypto market.
In particular, the futures market has been significantly affected, with an increase in trading volume for the btc/USDT pair. This surge has highlighted an intense period of market participation, with major exchanges, particularly Binance, at the forefront of this trading frenzy.
Record trading volumes and market volatility risks
A CryptoQuant analyst known as Crazzyblockk shared <a target="_blank" href="https://cryptoquant.com/insights/quicktake/673611a63003544c23b2531b-Binance-and-Other-Exchanges-Break-Records-with-Skyrocketing-bitcoin-Futures-Cont” target=”_blank”>perspectives on the trading frenzy phenomenon, noting that the bitcoin futures market has become “exceptionally overheated.”
According to the recent analyst post on the CryptoQuant QuickTake platform, trading volume has increased in both spot and futures markets on major centralized exchanges.
<img src="https://technicalterrence.com/wp-content/uploads/2024/11/Binance-dominates-as-Bitcoin-futures-volume-hits-new-peaks-amid.png" alt="bitcoin volume from the spot and futures market. ” />
The cumulative trading volume for btc/USDT across all major platforms has reached an amount of approximately $129 billion, with Binance contributing a substantial amount of $50.2 billion to this figure.
The increase in futures trading activity has raised important questions about market stability and the potential for increased volatility. As Crazzyblockk explained, when the bitcoin derivatives market experiences rapid growth, particularly in the futures segment, there is often a tendency for greater market fluctuations.
The CryptoQuant analyst added:
While this may briefly boost demand, it often leads to minor pullbacks and wild fluctuations.
The analyst stressed that the “overheated” state of the market calls for caution on the part of investors and traders. In his words:
Given the current climate, investors and traders would be wise to exercise caution, refrain from hasty speculation, and wait for a period of price stability before taking further action.
Insights on bitcoin
bitcoin is facing a notable drop in price, falling 6.1% in the past day to a current trading price of $87,977. This continued price decline comes after it recently reached an all-time high above $93,000, as recorded yesterday.
With btc trading back below the $88,000 region, the asset is now down 5.9% from its high. While the reason behind this ongoing correction is not certain, renowned crypto analyst Ali has recently highlighted an interesting btc trend behind the scenes.
in a <a target="_blank" href="https://x.com/ali_charts/status/1857080800296276445″ target=”_blank”>mail Uploaded today on Ali warned to “stay alert and proceed with caution.”
<img src="https://technicalterrence.com/wp-content/uploads/2024/11/Binance-dominates-as-Bitcoin-futures-volume-hits-new-peaks-amid.jpeg" alt="bitcoin sell-side risk ratio. ” />
Meanwhile, another analyst known as Javon Marks has also <a target="_blank" href="https://x.com/JavonTM1/status/1856821201181839494″ target=”_blank”>noted in one of his recent posts that while further bullish momentum is still seen with bitcoin hitting a peak yesterday, “the target now remains $116,652, which is forecast to reach even greater speeds and with greater power than the first.”
<blockquote class="twitter-tweet”>
Some of the biggest, most accurate, and most simplistic analysis you're likely to see on <a target="_blank" href="https://twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” target=”_blank”>#bitcoin (btc) and crypto !
December 2022 at ≈$16,782, we noticed bullish signals, as well as a price breakout that indicated the target of $67,559 that at that time had been surpassed… https://t.co/qrJv2WPwnG pic.twitter.com/7ZkeUV13UY
— JAVON
BRANDS (@JavonTM1) <a target="_blank" href="https://twitter.com/JavonTM1/status/1856821201181839494?ref_src=twsrc%5Etfw” target=”_blank”>November 13, 2024
Featured image created with DALL-E, TradingView chart
<script async src="https://platform.twitter.com/widgets.js” charset=”utf-8″>
