The downside does not last long with an abrupt return to form taking Bitcoin price action back to mid-May levels.
Bitcoin (BTC) was back at $57,000 on Oct. 13 as a classic move left hopeful traders liquidated to the tune of $200 million.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader sees parallels to August price action
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 from February, the trend is encouraging, commentators said, considering the likelihood of traders frontrunning a possible futures-based exchange-traded fund (ETF) approval in the United States.
Bitcoin futures open interest chart. Source: Javier Paz/ Twitter
"The herd is not just coming, they're stampeding," Three Arrows Capital CEO Zhu Su added on the data from Forbes analyst Javier Paz.