BTC’s Open Interest in Binance has surged by $2.2 billion in the last 20 days, according to data shared today by crypto analyst AMCrypto Alex. This increase signifies that an increasing number of derivative traders are positioning themselves for a further uptrend. It also suggests that leverage is developing in the Bitcoin market, which could heighten future price fluctuations.
Bitcoin Bullish outlook
After weeks of volatile performance, Bitcoin is displaying indicators of a strong rebound. It has managed to rise from previous lows, making a favorable shift in sentiment in the broader digital asset market. BTC has been on a remarkable upturn movement, with a 3.1% increase over the past seven days.
One of the key catalysts contributing to this rebound is the increase of Open Interest (OI), which measures the entire amount of outstanding future contracts. In the past 20 days, this major on-chain indicator experienced an impressive $2.2 billion rise, now standing at a whopping 120 billion. This surge in OI shows that traders are increasingly more engaged with Bitcoin’s bullish movement, potentially suggesting future price rises.
As OI increases, the market’s sentiment becomes more enthusiastic. Specifically, a positive funding rate, which gauges the cost of holding short contracts versus long ones, indicates that long positions are exceeding shorts. This shift suggests that traders are placing long premiums, hoping for continued upside momentum for BTC. However, this increasing leverage in the Bitcoin market could heighten both returns and losses in the near term.
Indicators show a potential move to $97k
Technical indicators show that Bitcoin could continue its ascending motion in the coming days, with trading charts indicating key insights into the present market conditions. BTC is currently trading in an ascending pattern, further boosting the situation for the continued upward trend.
An ascending pattern normally indicates a continuation of an upsurge, with investors becoming more enthusiastic. Due to increasing buying activity and improving market conditions, several traders are confident that BTC could breach its next resistance regions of $95,577 and $96,514, aiming for a move toward $97,803.
