Bitcoin Volatility on the Rise: On-Chain Metrics and Binance Data Point to Price Swings

• On-chain metrics such as futures open interest and estimated leverage ratio have reached their highest levels in over a month, signaling upcoming Bitcoin (BTC) volatility.
• Additionally, data from Binance indicates that a short liquidations cluster has formed between $16,650 and $16,940.
• These metrics and data point to potential Bitcoin volatility and price swings in the near future.

Bitcoin (BTC) appears to be on the cusp of some major volatility, as a variety of on-chain metrics and data from Binance indicate that the digital asset is about to experience some significant price swings.

Analyzing data from Glassnode, it appears that the BTC futures open interest and futures estimated leverage ratio have reached their highest levels in over a month. The futures open interest metric reflects the USD value of the total amount of funds allocated in open futures contracts, and the futures estimated leverage ratio represents the ratio between the open interest in futures contracts and the balance of the corresponding exchange. The open interest has risen to over 500,000 BTC, and the estimated leverage ratio has increased by around 10% in the past 20 days, reaching 0.34.

In addition to these on-chain metrics, data from Binance indicates that a short liquidations cluster has formed between the prices of $16,650 and $16,940. The current BTC price is currently hovering around $16,547, only $100 away from entering this liquidations cluster.

Overall, the combination of on-chain metrics and data from Binance point to potential Bitcoin volatility and price swings in the near future. Investors should be sure to monitor these metrics and data points in order to stay ahead of the game and manage their portfolios accordingly.