Key Breakthrough Zones seen by Bitcoin Open Interest Method in Previous Bull Markets – Details
According to the latest crypto-fast post by contributor Avocado_onchain, Bitcoin (BTC) may be used for extended gatherings. The highest cryptocurrency open interest in futures markets is approaching historically high levels, a trend seen in previous bull markets.
Bitcoin open interest continues to rise
As BTC Edge near At $100,000, the open interest in the futures market is rising rapidly. Avocado_onchain shared graphs indicate the current spike of open interest observed in earlier cattle cycles.
The analyst noted that in the past, Bitcoin’s open interest exceeded its previous peak (highlighted in red), followed by a rapid rapid rise in price, as shown in the yellow arrows and green circles shown in the chart.
Although the current level of open interest has not surpassed previous highs, the steep upward trajectory suggests it may do so soon. If this level is violated, the price of BTC may follow suit and surpass its current all-time high (ATH).
Funding rate is basically stable
Despite the optimistic outlook, Avocado_onchain warns that excessive open interest can create an environment of over-leverage, Enhanced Risks of liquidation events and volatility. However, at present, BTC’s funding rate is basically stable.
For beginners, the funding rate is a regular payment between medium- and short traders of permanent futures contracts, designed to keep the contract price consistent with the spot market. In the context of BTC, positive funding rates indicate more demand for desire, while negative rates indicate more demand for shorts.
Currently, the overall funding rate between futures exchanges shows a slightly prolonged bias without reaching an overheating level. Interestingly, Binance, which passes through the largest trading volume, shows a brief bias advantage, helping to keep the market equilibrium.
Crypto analyst Ali Martinez responded to this view. In the nearest one postal On X, he noted that 63.76% of binary traders are currently underplace. This reinforces the notion that the current rise in open interest reflects healthy long-term positioning rather than speculative surplus.
In addition, Bitcoin’s update upward momentum spark Bullish signals in key chain indicators. The MVRV ratio, an indicator often used to assess market sentiment, has begun to climb, which is another sign of growing investor confidence.
Similarly, the recent Bitcoin Sott indicator Flashing Green, a signal that has been historically before large gatherings. At press time, BTC traded at $97,569, up 0.5% over the past 24 hours.
Featured images from Unsplash.com, charts from CryptoQuant and TradingView.com
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