BTC Price Hints at $100k Soon as Bitcoin Open Interest Rises
- Crypto traders often use open interest to gauge market sentiment.
- This implies bulls will sell their holdings after expiration.
The most valuable asset surged over $62,000 ahead of the first US Bitcoin futures ETF. An increase in BTC price and open interest is considered to confirm an asset’s upward momentum.
Cryptocurrency traders often use open interest to gauge market sentiment. Glassnode, a crypto statistic platform, reported that Bitcoin’s open interest increased by 107 percent to $12.2 billion on October 18th, 2021. This rising growth tends to boost price activity.
In 2020, the star crypto’s future open interest increased by 98%. During its first-half Bull Run, open interest was over $15 billion, with a high of $64,863. Thus, the recent increase in open interest indicates expert traders returning to the Bitcoin market.
Whales Driving the Momentum
A $1.5 billion daily high in options activity last week indicates huge price increases ahead. The same reason previously pushed the most dominating asset’s price momentum to new ATH. However, according to Bybt statistics, 72.87 percent of long liquidations occurred in the past 24 hours, suggesting increased interest in the asset.
Interestingly, whales appear quite positive about the asset. They want long positions up to $100k. Glassnode data also showed up to $350 million in open interest volume trapped with call options expiring in 2021. This implies bulls will sell their holdings after expiration, lowering the coin’s value by 10% to 15%.
According to CoinMarketCap, the asset traded at $61,263, up 0.33 percent in the previous 24 hours. Long term, the asset may well surpass ATH. In the near run, with sellers marginally outnumbering buyers, the BTC price is anticipated to revisit $59,500 and perhaps recover.
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Text source: TheNewsCrypto – Blockchain & Cryptocurrency News M
