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The downside does not last long, as Bitcoin price action quickly returns to mid-May levels.
Bitcoin (BTC) was back at $57,000 on Oct. 13 after a classic move resulted in a $200 million loss for hopeful traders.
Trader sees parallels to August price action
Data from TradingView showed BTC/USD reaching highs of $57,250 on Bitstamp, up almost $3,000 in under three hours.
Reminiscent of multiple surges over the past week, Bitcoin thus gained 5.5% on the day, lining up a rematch of five-month highs.
“This correction on Bitcoin is nicely comparable to the price action in August,” Cointelegraph contributor Michaël van de Poppe commented.
“Just a minimal correction for a few days, after which Bitcoin continues grinding upwards, while altcoins are dropping in their $BTC pair.”
Fellow trader and analyst Rekt Capital meanwhile confirmed a higher low for BTC/USD during the retracement, thus positioning it for further strength.
#BTC forms a Higher Low on the dip and continues to maintain the blue level as support
— Rekt Capital (@rektcapital) October 13, 2021
Futures open interest explodes over 70%
Meanwhile, data from derivatives showed CME Bitcoin futures open interest skyrocketing over the past month, further fuelling cause to be positive on price action ahead.
While still below all-time highs set in February, the trend is encouraging, according to commentators, given the possibility of traders aheadrunning a potential futures-based exchange-traded fund (ETF) approval in the United States.
“The herd is not just coming, they’re stampeding,” Three Arrows Capital CEO Zhu Su added on the data from Forbes analyst Javier Paz.