Bitcoin OI Hits New High: Bullish Trend Continues
Bitcoin’s open interest has reached a new all-time high since its peak of $73,570. Specifically, the open interest totaled $37.66 billion, according to data from Glassnode.
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Understanding Open Interest
Open interest (OI) is the value of outstanding contracts in the derivatives market. A decrease in OI suggests that traders are closing their positions, which could lead to a price decline.
Significance of Rising OI
An increase in OI, as seen recently with Bitcoin, indicates new money entering the market. If this trend persists, it could support BTC’s upward trajectory and lead to a higher price.
BTC Aiming Higher, Supported by Exchange Flow
At the time of writing, BTC is trading at $71,200, up 3.89% over the past week. With growing interest in the token, there is a high likelihood of surpassing its all-time high and possibly reaching $80,000.
Monitoring exchange flow is crucial, as it can influence price movements. Tracking exchange supply and off-exchange supply, as well as major exchanges’ balances, can provide insights.
For instance, a report by AMBCrypto found a decrease in historical balances on Binance and Coinbase, suggesting users were withdrawing BTC from these platforms. Meanwhile, Kraken recorded an increase in BTC purchases before the recent dip.
Traders Remain Bullish
While a rise in exchange supply could jeopardize the bullish outlook, traders seem optimistic based on funding rate data from Coinglass. A positive funding rate indicates that longs dominate and expect BTC’s price to rise.
If Bitcoin climbs to $74,000, as discussed by traders holding long positions, it could potentially reach $80,000, unless bears intervene to halt the uptrend.
