Bitcoin Open Interest Shows Strong Upwards Movement
As pointed out by a CryptoQuant , the BTC open interest has reversed its trend, and is now showing sharp movement up.The “open interest” is an indicator that measures the total amount of futures contracts still open at the end of any trading day on derivatives exchanges. The metric takes into account both long and short positions.
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Looks like the indicator has started moving up recently | Source:
As you can see in the above graph, during the 4th Dec crash, the value of the Bitcoin open interest sharply dropped off.
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This trend may mean that whales are now returning to the Bitcoin derivatives market, which can be bullish for the price of the crypto.BTC Price
At the time of writing, Bitcoin’s price floats around $48.8k, up 3% in the last seven days. Over the past thirty days, the coin has lost 18% in value.
The below chart shows the trend in the price of BTC over the last five days.BTC's price might have started to recover | Source:For a while now, Bitcoin has mostly showed sideways movement as the coin has been stuck between the $45k and $50k price levels. However, today BTC seems to have shifted to some strong uptrend. But since the price is still below $50k, it’s unclear at the moment whether this change of trend can help BTC break out of this consolidation. If the open interest is anything to go by, the signs seem to be bullish.
Featured image from Unsplash.com, charts from TradingView.com, CryptoQuant.com