Bitrabo Editorial
Bitcoin is currently trading near its September peak, having briefly surpassed $66,000 on October 14. Despite some pullback, the overall trend appears positive, suggesting potential gains as we approach Q1 2024.
Bitcoin Open Interest Nearing $40 Billion Mark
The leading cryptocurrency is on an upward trajectory, leading to increased market positivity. Recent data indicates that Bitcoin open interest across key derivatives exchanges is nearing record levels.
As per Coinglass, open interest jumped to over $39 billion in March 2024. As of October 15, it currently stands above $37.6 billion, a rise from $34.6 billion the previous day.
This open interest metric helps assess traders’ engagement levels, tallying both short and long leveraged positions taken across major exchanges such as Binance and Bybit.
Open interest itself doesn’t suggest whether more traders are buying or selling; it simply reflects their readiness to participate in the market.
Historically, an uptick in crypto prices, similar to what was observed in early Q4 2023, has been paired with rising open interest, which peaked at a historic $39 billion in March 2024.
Conversely, a decline in Bitcoin prices during Q2 2024 corresponded with reduced open interest, dropping below $26 billion when BTC dipped under $50,000 on August 6, before gradually recovering.
Could BTC Prices Surge Beyond $74,000?
Given the recent growth in a 24-hour period, a close above $66,000 may entice more traders to engage in leveraged positions. This could push the Bitcoin open interest to exceed $40 billion, setting a new record.
Although Bitcoin has firmly rejected the $66,000 mark, if the upward momentum from October 14 continues, it may rise back towards July 2024 highs of $70,000. Traders remain hopeful that prices will align with September advancements and aim toward March highs.
Despite the growing confidence, Coinglass data shows a higher volume of short trades compared to long trades. Currently, 51% of Bitcoin’s trading volumes are sell orders, while only 49% are buy orders, indicating a prevailing bearish sentiment among many traders.