The most valued asset soared beyond the $62,000 mark prior to the much-awaited debut of the first US Bitcoin futures ETF. An increase in BTC price and a rise in open interest alongside is said to confirm an uptrend momentum of the asset.
Crypto traders often make use of open interest as a standard to confirm the market sentiments. Insights from Glassnode, a crypto metric platform revealed that Bitcoin open interest has risen incredibly by 107% reaching $12.2 billion on October 18th, 2021. from the start of this quarter. This increasing growth tends to positively impact the price action.
In 2020, the star crypto soared by 280%, while its future open interest was up by 98%. During its bull run in the first half of the year, the open interest was nearly $15 billion and took the price level to an ATH of $64,863. Hence, the current upstick in the open interest is an indication of advanced traders getting back to the Bitcoin market.
Moreover, Option volume peaked by $1.5 billion per day last week indicating massive price gains ahead. Last time the same factor recorded new highs taking the most dominant asset’s price momentum to new ATH. On the other hand, data from ByBT indicated that in the last 24-hours there were a total of 72.87% of long liquidations indicating increasing interest in the asset.
Interestingly, whales seem to be extremely bullish for the asset. They are calling out for long positions betting up to $100k. Data from Glassnode also revealed that up to $350 million open interest volume has been locked with call options expiring on 31st December 2021. This further hints that bulls would liquidate their assets post expiry, which would dump the coin’s value by 10% to 15%.
Collectively, the asset is trading at $61,263 at the press time with 0.33% gains in the last 24 hours. In the long run, the asset has strong possibilities to surge beyond ATH. In the short term, as sellers slightly showing an upper hand as compared to buyers the BTC price is expected to retest at $59,500 and could soon rebound.