BTC/USD Daily Chart
The reason why Bitcoin hitting $14,000 in this present market cycle may be quite significant is since little futures volume has been traded above $14,000. This may be attributed to the fact that before and during 2018, BitMEX and other perpetual swap platforms did not have that much interest, as there was enough leverage as is longing Bitcoin or Altcoins through spot markets.
An analyst also noted despite Bitcoin’s $2000 surge in the prior week that almost no one in the present derivatives market ever traded meaningfully above the recent level.
With derivatives now believed to impact Bitcoin’s spot price, the introduction of a whole new price range to derivatives traders could lead to increased volatility. Also, Bitcoin having interacted with the $14,000 a couple of times in its short span history may signal that this time will be quite different from a shift in market dynamics.
Crypto analyst Qiao Wang opined that once Bitcoin breaches $14,000, the crypto market will see a “different regime in terms of volatility, momentum, retail participation, and so on” he however didn’t go into details as to which crypto market trends will be impacted. This he stated:
“Once BTC breaks $14k, we’ll likely be in a different regime in terms of volatility, momentum, retail participation, and so on. A lot of things that worked last few months may no longer work and vice versa. $20k will take this regime to a whole new level. Just a hunch. We’ll see.”
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