Bitcoin open interest surges by 20% in 20 days – Leverage sets the stage for volatility
Bitcoin is still above the $94,000 level, and after sales pressure and extended mergers, Bitcoin shows obvious signs of strength. The Bulls have returned to short-term control and prices have increased as optimism grows across the market. However, the environment is far from risk-free, with volatility still rising with ongoing global trade tensions and macroeconomic conditions shifting rapidly.
According to the latest data from GlassNode, Bitcoin open interest has increased by 20% over the past 20 days. The surge shows that traders are increasingly positioning, but it also shows that leverage is being built across the market, which may expand future price volatility.
As Bitcoin tests the upper end of its recent trading range, the next few days will be crucial. Successfully pushing towards the $10.K mark could lay the foundation for brand new gatherings in unknown areas, and failure to maintain support would expose BTC to another round of mergers or corrections.
As volatility increases, Bitcoin tests key levels
Bitcoin has been traveling wildly since Donald Trump won the U.S. presidential election in November 2024, while volatility in global markets has increased. Macroeconomic tensions, trade conflicts and unstable financial situations have created an unpredictable environment, and Bitcoin is no exception. However, despite the turbulence, the Bulls have recently returned to short-term control.
After decisively surpassing the $89,000 resistance, this is a key level that limits the upside of Bitcoin, and BTC is now testing key areas below $100,000. If the Bulls manage to break through with strength, this level represents a psychological barrier to the market and is a potential portal to a new historical climax.
Top analyst Ali Martinez shared insights on X, showing that Bitcoin open interest has grown 20% over the past 20 days and is now over $26 billion. This significant increase shows that traders are actively positioning future price movements. However, this also emphasizes the growth of the entire market, which can amplify profit and loss in the short term.
Leverage-driven gatherings tend to be fragile, so despite the bullish sentiment, the risk is still high. The next few weeks will be crucial for Bitcoin as it confirms this breakthrough or faces another strong round of volatility.
BTC closes weekly: Bulls must defend $90K
As the market approaches a crucial weekly closure, Bitcoin trading is around $94,000. The Bulls finally got back under control after weeks of drastic volatility and heavy sales pressure earlier this year. However, as global macroeconomic situations remain very unstable, especially due to ongoing U.S.-China trade tensions, it is still necessary to exercise caution.
To keep Bitcoin bullish, the Bulls must earn a closing price of more than $90,000 per week. Now, this level is a key support zone, and closing on it will strengthen the idea that Bitcoin is building strength to push new highs.
Still, it is crucial to quickly recover the $100,000 level. The move above $100,000 not only marked a major psychological breakthrough, but also laid the foundation for intense gatherings entering unknown territory. If the Bitcoin stall is too long below $100,000, then uncertainty and rising market risks may cause new sales pressure.
The days to come are the key. The Bulls are motivated by them, but they must act quickly to consolidate recovery and maintain the instability of the broader financial markets. As the new weekly candle approaches, everyone’s eyes are focused on Bitcoin’s performance.
Featured images from DALL-E, charts from TradingView
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