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Why the Significant Unwinding of Bitcoin Futures Contracts Led to BTC Losing Support of $30,000

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On April 18th, according to Glassnode data, the significant unwinding of Bitcoin futures contracts last week may be one of the reasons why BTC lost support of $30000 this week. Coi

Why the Significant Unwinding of Bitcoin Futures Contracts Led to BTC Losing Support of $30,000

On April 18th, according to Glassnode data, the significant unwinding of Bitcoin futures contracts last week may be one of the reasons why BTC lost support of $30000 this week. Coin Market Cap data shows that Bitcoin has dropped to $29474 at the time of writing, with a drop of over 2% in the past 24 hours. The current Bitcoin open futures contract is approximately 375000 BTC, a decrease of approximately 25000 BTC compared to last weekend. In addition, over $100 million in cryptocurrencies have been cleared within the past 24 hours, resulting in long offset. （Crypto Slate）

Data: Bitcoin open futures contracts decreased by approximately 25000 BTC compared to last weekend

Introduction

On April 18th, Glassnode data revealed that the significant unwinding of Bitcoin futures contracts could be attributed to the loss of support of $30,000 this week. In addition, Coin Market Cap data showed a drop to $29,474 with a decrease of over 2% in the past 24 hours. This article will explore the factors leading to the drop in Bitcoin prices.

What Are Bitcoin Futures Contracts?

Bitcoin futures contracts are agreements to buy or sell Bitcoin at a predetermined price on a specified future date. These contracts are traded on exchanges, allowing traders to hedge their positions, speculate on future prices, and manage risks.

Why Did Bitcoin Futures Contracts Unwind?

One of the reasons that Bitcoin futures contracts had significant unwinding can be attributed to the decrease in Bitcoin prices. As a result, many traders liquidated their positions, leading to a decrease in open futures contracts.

Impact of Unwinding of Bitcoin Futures Contracts on BTC Prices

The unwinding of Bitcoin futures contracts led to a decrease in BTC prices as traders sell off their positions, creating a bearish sentiment. This decrease in price leads to a decrease in open futures contracts as traders close their positions, leading to a further decline in BTC prices.

Support Levels of BTC

BTC’s support levels refer to the price points at which buying pressure is strong enough to prevent a further decrease in prices. The significant unwinding of Bitcoin futures contracts may have resulted in the loss of support of $30,000 for BTC, leading to its current price of $29,474.

Conclusion

The significant unwinding of Bitcoin futures contracts may have contributed to the loss of support of $30,000 for BTC. This decrease in BTC prices may have been caused by many traders liquidating their positions, leading to a bearish sentiment. It is important for traders to monitor the volume of futures contracts to understand the market sentiment.

FAQs

Q1: Why do traders use Bitcoin futures contracts?

A1: Traders use Bitcoin futures contracts to hedge their positions, speculate on future prices, and manage risks.

Q2: What are BTC’s support levels?

A2: BTC’s support levels refer to the price points at which buying pressure is strong enough to prevent a further decrease in prices.

Q3: What is the impact of unwinding of Bitcoin futures contracts on BTC prices?

A3: The unwinding of Bitcoin futures contracts leads to a decrease in BTC prices as traders sell off their positions, creating a bearish sentiment.

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