Bitcoin Open Interest Tops 19-Month High: Historical Data Shows What To Expect
November 16 2023 - 5:00PM
NEWSBTC
The Bitcoin open interest can often be an indication of where the
BTC price might be headed next depending on whether or not the
metric is rising or falling. This time around, the Bitcoin open
interest has risen drastically, hitting 19-month highs in the
process. Using historical data, it is possible to extrapolate what
this means for the crypto’s price, especially as investors remain
very bullish. Bitcoin Open Interest Surges To $17.04 Billion In an
interesting turn of events, the Bitcoin open interest has been
rising quickly across various exchanges. In the last 24 hours
alone, this metric rose by a cumulative 7.89% across all exchanges
in the space, bringing the total open interest to 454,150 BTC worth
a staggering $17.04 billion. Related Reading: Ethereum Breakout:
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$10,000 For now, most of the Bitcoin open interest is concentrated
across the CME, Binance, and ByBit exchanges. But perhaps what is
even more interesting is that these open interest levels represent
a 19-month high. Source: CoinGlass According to the data presented
on the CoinGlass website, the last time that the Bitcoin open
interest moved in this fashion and to this high was back in March
2022, before the historical Terra LUNA crash that sent the market
into a prolonged bear market stretch. This means that the last time
that the Bitcoin open interest rose this much was during a time
when investors were still very much in the throes of bull run
euphoria. As such, the historical performance of the BTC price back
then in relation to the open interest could serve as a guide to
what might happen to the digital asset’s price next. BTC price
finds support at $37,400 | Source: BTCUSD on Tradingview.com
Historical Data Says BTC Price Will Surge Similar to the current
trend, the Bitcoin open interest had surged from around 38,000 BTC
to over 44,000 BTC in the space of a month, and the BTC price
followed quickly. This trend saw the price rise in March 2022 from
$38,700 to over $47,000 before the month was over. Related Reading:
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Going by this historical performance and assuming Bitcoin sticks to
this trend, the rally may be far from over. The BTC price is also
sitting at a similar price point at $37,500 and a similar surge
could bring its price toward $45,000 before the month is over.
However, there is also the possibility that the open interest could
peak at this level and begin to decline. Once this happens, then in
the same fashion as in April 2022, the BTC price could begin to
decline as the open interest drops. A similar crash would send the
price back down toward $27,000. Follow Best Owie on X (formerly
Twitter) for market insights, updates, and the occasional funny
tweet… Featured image from Yahoo Finance, chart from
TradingView.com
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