Bitcoin Records a 3% Surge, Resulting in a Boost in Open Interest
Following a recent uptick in price, Bitcoin’s Open Interest encountered notable fluctuations, leading to the closure of several positions.
Despite this volatility, Bitcoin Futures Open Interest has sustained elevated levels, with a marked uptick observed in recent days, indicating sustained trader engagement.
Bitcoin Futures Witness Market Changes
As per data from Glassnode, the recent price rally of Bitcoin saw approximately $2.5 billion worth of Futures Open Interest being forcefully liquidated, possibly expelling numerous short sellers.
However, the decrease in Open Interest across the top three perpetual exchanges stayed under 5%, suggesting that the substantial impact did not result in a drastic market collapse.
This underlines the market’s resilience, which, even amid increased volatility, continues to influence leveraged traders.
Historically, the total leverage cost during Bitcoin’s March all-time high (ATH) soared to $120 million weekly.
Recently, this figure has dropped to $15.3 million per week, showcasing a significant decline in speculative, bullish trades as the market transitioned into a range-bound phase.
Influx of Funds Boost Bitcoin’s Open Interest
Despite the closure of substantial positions earlier, traders are actively opening new ones.
According to CryptoQuant, Bitcoin’s Open Interest, valued at around $17.5 billion on October 10th, surged to over $19 billion by October 12th.
Although there has been a minor drop since then, the Open Interest remained robust at over $18 billion.
This renewed activity from traders is largely linked to Bitcoin’s recent price surge, propelling the digital asset above the $63,000 threshold.
The escalation in Open Interest indicates traders positioning themselves for potential future price movements.
BTC Encounters Resistance at Crucial Price Levels
An analysis of Bitcoin’s daily price chart exhibited a 3% increase on October 11th, propelling BTC to $62,500.
This surge propelled the price beyond the 50-day moving average, a former significant resistance level.
Nevertheless, Bitcoin now faces stiffer resistance at the 200-day moving average, situated around $63,400.
Despite peaking around $63,100 post the recent surge, the cryptocurrency struggled to breach this vital threshold.
Currently, Bitcoin has retreated slightly to $62,700, marking a 1% decline and distancing itself from the resistance.
Despite volatility and the enforced closure of billions in Futures Open Interest, Bitcoin’s Open Interest remains robust.
The recent surge to $63,000 showcases growing trader optimism, although formidable resistance persists near $63,400.
The forthcoming days will ascertain whether Bitcoin can pierce through this obstacle or faces continued challenges at this critical price level.