Although the recent pricing performance of Bitcoin attracted great attention, an explosive increase in open interest (OI) is a true story. The open percentage of Bitcoin increased by about $ 2 billion on the last day, indicating an increase in trade activity and increasing the interest of investors in the highest cryptocurrency.
The total number of active contracts in the markets of futures and options is represented by an open percentage. An increase in OI is usually associated with higher expectations of volatility and an increase in the participation in the markets of derivatives. This significant increase in OI emphasizes the increase in market expectation to Bitcoin’s next step, since cryptocurrency is currently trading by about $ 102,500.
It is noteworthy that financing indicators are still low, despite the increase in OI. This shows that market moods are balanced, neither length nor shorts are owned. When OI is so high, the neutral level of financing may indicate that the traders are careful and retained when the strong directed bets are placed until a clear movement appears. The diagram also indicates that the recent surge of Bitcoin’s price was accompanied by a strong trade volume.
This strengthens the argument in favor of a constant impulse. The idea that Bitcoin can again dominate the market cycle is additionally confirmed by the fact that Ethereum (ETH) saw a slight decrease in its open interest over the same period of time. Direct support of $ 97,000 and a resistance of $ 105,000 are important levels for BTC and can determine the asset movements in the foreseeable future.
The refusal to 50 EMA at $ 87,000 may be the result of an inability to maintain support, while a break over resistance can open a door for a test of $ 110,000. The growing pricing action and the total OI bitcoin indicate a change in the dynamics of the market, positioning cryptocurrency to surpass other significant cryptocurrencies in the near future. To determine the strength of this trend, traders must closely monitor the indicators of financing and volume bursts.
