Bitcoin open interest hits an ATH of $55.7b: here’s what to expect

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As a seasoned crypto investor with a decade of experience navigating the digital asset markets, I find myself both enthralled and cautiously optimistic as Bitcoin reaches yet another all-time high in open interest amidst this recent bull run. The surge in trading activity and investor interest is nothing short of impressive, particularly considering the slump we saw just a couple of weeks ago.

As a crypto investor, I’ve noticed that the buzz in the Bitcoin futures market is at its peak, reaching an all-time high. This surge comes hand-in-hand with the current market uptrend, which has propelled Bitcoin to hit new record prices.

The Bitcoin (BTC) OI has spiked to $55.7 billion, indicating a massive increase in trading activity and investor interest, according to the data aggregator Coinglass. This latest surge follows a previous slump to $26.65 billion on Aug. 6.

The majority of this graph is dominated by CME, which owns approximately 32.3% of the entire Bitcoin futures Open Interest (OI), equivalent to around 197,620 Bitcoins, worth a staggering $18 billion.

As a financial analyst, I can state that I’m observing Binance, the leading crypto exchange by trading volume, holding a significant portion of approximately 19.47%. This proportion equates to an impressive open interest of more than 119,000 BTC, translating to roughly $10.86 billion in value.

In third place among major cryptocurrency exchanges is Bybit, accounting for approximately 13.49% of the total open interest. This translates to around 82,580 Bitcoins or a staggering $7.53 billion. Following close behind are Bitget and OKX, each occupying about 9.9% and 7.91% of the market share respectively.

The surge in Open Interest (OI) is due to a strong upward trend in prices that started around the U.S. presidential election on November 5. As the market adjusted to Donald Trump’s election win, Bitcoin experienced an unprecedented rise, establishing new highs throughout its journey.

Yesterday, I witnessed my crypto investment hitting a fresh peak of approximately $93,480, only to slightly retreat shortly after. At the moment I’m typing this, Bitcoin has seen a 4% increase over the past day and is trading around $91,108.

Bitcoin faces resistance

The price of Bitcoin seems to be facing obstacles around $91,265, which is close to its upper Bollinger Band. For it to keep rising, it needs to break through this resistance level first.

In the midst of a surge, the Commodity Channel Index (CCI) reached a high of 247, indicating that the asset might have moved too far up, suggesting it’s in overbought territory. However, the CCI has since pulled back to 163.35. There seems to be a discrepancy between this indicator and Bitcoin’s actual price movement, as they don’t seem to align well with each other.

Over the last three days, I’ve observed an intriguing trend in the top cryptocurrency: while it’s been scaling unprecedented peaks, its Commodity Channel Index (CCI) has taken a dip. This divergence between Bitcoin’s record highs and the CCI drop could potentially signal a forthcoming deceleration.

If Bitcoin doesn’t manage to surpass its current resistance level, there might be a potential drop coming up. In such a case, the nearest floor could be around $88,000. Additionally, it may find more stability at approximately $87,113 and $83,258 if the downward trend persists further.

Conversely, despite the high Open Interest (OI), it suggests that investors remain hopeful. If Bitcoin manages to break through the $91,265 resistance level, there’s a possibility it could challenge its recent all-time high and potentially reach above $93,000 again.

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2024-11-14 12:24