The price of bitcoin has fluctuated in the last few weeks, but it seems, at least for now, the advantage is on the side of the bulls.

They have managed to regain an important technical and psychological level of $60,000, and they are currently trying to raise BTC above $61,000.

However, we are waiting for the weekend, when the price dynamics is usually very different due to a number of factors, such as lack of volume.

With this in mind, experts suggest analyzing three indicators that can affect the dynamics of bitcoin prices over the weekend.

Trading volume and its impact on volatility

Usually, high volatility is associated with a large volume of trading. However, it is also worth noting that trading volume can be a reactionary metric — a function of volatility. In other words, traders react to market changes. If there is a sudden movement in either direction, they open the appropriate batch of orders to protect or benefit from the movement, thereby pumping more liquidity into the market.

Trading volume on weekends is traditionally lower than on weekdays. This plays a role in another indicator called market depth. The lower the volume and, consequently, the liquidity in the market, the easier it is to make more significant price movements.

Just a few weeks ago, the price of BTC dropped from over $62,000 to less than $57,000 over the weekend. At the time of writing this article, the 24-hour volume is about $25 billion, which is more or less in line with the average, but any changes in this indicator in the next couple of days may be a signal worth paying attention to.

Bitcoin Financing Rate

Another interesting indicator that should be taken into account when assessing the probability of future price movement is the bitcoin financing rates

They are used to assess whether buyers or sellers are fulfilling their orders more aggressively. It is important to clarify here that financing rates are used in the derivatives market. However, it is known that the latter also affects spot prices, which makes it an important factor.

Just a few days ago, financing rates dropped to almost zero after the bitcoin price fell below $60 thousand. This suggested that a rebound could occur, and of course, just a day later, the cryptocurrency soared above $61,000.

At the time of writing, financing rates on some exchanges have even turned negative on some cryptocurrency exchanges, indicating the potential for more volatile movement in the coming days, especially given increased trading volumes.

The price of Bitcoin and how it is affected by open interest

Open interest in bitcoin is another important indicator that can play a role in shaping larger movements over the weekend.

This is another important indicator used in the derivatives market. In fact, this is the sum of all open positions, regardless of whether they are long or short. Large or growing open interest is usually a harbinger of volatility.

The data shows that over the past 24 hours there has been an increase of about 1.7% in perpetual OI contracts and 0.2% in futures contracts.

High open interest ahead of the weekend, combined with weaker trading volume and broader market liquidity, may mean that it will be easier and with less effort to change the market situation. 

Here are three things to look out for in the next couple of days to avoid surprises and potentially take advantage of opportunities.