Bitcoin is trading at September highs, rebounding after breaking above $66,000 on October 14. Although the coin is trading low in apparent values, a path of little resistance is visible in the north, and the trend is changing, in line with the gains of Q1 2024.
Bitcoin Open Interest Rising, Approaching $40 Billion
After months of decline, the world’s most valuable currency is rising, and with it, sentiment is improving. The latest market data shows that Bitcoin open interest on all major exchanges is approaching the top.
According to Coinglass, open interest rose to $39 billion in March 2024. As of October 15, Bitcoin open interest is over $37.6 billion, up from $34.6 billion yesterday.
Open interest is often used to measure a trader’s interest. The exchange data includes the number of all short and long positions submitted by traders on all major exchanges, including Binance and Bybit.
Since open interest does not measure and does not indicate whether there are many buyers or sellers at any given time, the metric measures seller interest and willingness to engage.
Whenever crypto prices rise, as was the case since the beginning of Q4 2023, open interest began to swell before rising to an all-time high of more than $39 billion in March 2024.
The decline in Bitcoin prices from Q2 2024 has also been accompanied by a contraction in open interest. On August 6, when BTC fell below $50,000, Bitcoin open interest fell below $26 billion before slowly recovering.
Will BTC Prices Consolidate Above $74,000?
Considering the rate of growth in the last 24 hours, there is a good chance that any break and close above $66,000 would attract more traders to open profit positions. In that event, Bitcoin’s open interest will grow to more than $40 billion, printing an all-time high.
From the daily chart, Bitcoin strongly rejected $66,000, marking the September high. However, if the October 14 bulls reverse, prices may float higher, back to the July 2024 high of $70,000. For now, traders are confident that prices will match September’s gains and meet March’s highs.
While confidence is high, the short-long term data from Coinglass revealed a few volumes are longer than shorter. Currently, 51% of BTC trading volume is selling, while 49% is buying volume. This data shows that many traders are still bearish.
Featured image from Canva, chart from TradingView
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