Bitcoin Open Interest Remains Stagnant Despite Prices Surpassing $100,000 — Analyst Warning from Bitcoinist.com
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure
Recent price movements of Bitcoin have been notably positive, as the leading cryptocurrency has reestablished itself above the critical $100,000 level. This surge in bullish sentiment aligns with a strengthening confidence among investors.
On Friday, May 15, Bitcoin’s price peaked at $103,800, marking its highest point since January. However, the latest on-chain analytics reveal a lack of trading activity in the derivatives market, which is typically observed when BTC reaches such heights.
Is BTC’s Price Rally Facing a Hurdle?
In a recent update on the social media platform X, crypto analytics service Alphractal noted that open interest (OI) has not significantly adjusted alongside Bitcoin’s price in recent days. The open interest metric reflects the total capital invested in BTC derivatives at any moment.
An uptick in open interest is generally perceived as a bullish signal for Bitcoin, indicating new capital entering the market. This trend implies buoying investor sentiment and heightened trader confidence.
Data from Alphractal indicates the current aggregated OI for Bitcoin, priced around $103,000, is approximately $61.3 billion. Previously, when BTC was at this remarkable price, the open interest exceeded $68 billion.
Source: @Alphractal on X
With today’s Bitcoin open interest falling short of the OI from the previous time BTC reached $103,000, Alphractal pointed out that this trend implies reduced leverage and less activity in the crypto market. Additional insights suggest that recent liquidation events or position closures may be influencing this phenomenon.
In the post shared on X, Alphractal highlighted other factors that might signal a potential short-term correction for the flagship cryptocurrency. One significant on-chain metric indicating this bearish trend is the Whale Position Sentiment.
The Whale Position Sentiment metric assesses the trading behavior and directional biases of large holders, encompassing net positions, market sentiment changes, and the status of open positions.
Chart depicting a decrease in Whale Position Sentiment from 1 to around 0.7 | Source: @Alphractal on X
Alphractal concluded that the decline in Whale Position Sentiment signifies large investors’ inclination to close long positions, shifting overall market sentiment. Should this metric continue to decline, the on-chain analytics company speculates it may result in price stagnation or even a correction.
Bitcoin Price Overview
Currently, Bitcoin’s price is at $103,035, showing little-to-no significant change over the last 24 hours. While the recent bullish trend suggests the potential for a new all-time high in the coming days, investors should proceed with caution in light of recent on-chain indicators.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
Source link
#Bitcoin #Open #Interest #Lags #Price #Action #Analytics #Firm #Suggests #Caution #Bitcoinist.com
