What BTC Open Interest shows and why we need to know it 🤔
Open Interest is the sum of all positions (long and short) currently open in the BTC derivatives market.
Crypto derivatives allow you to trade BTC without owning the cryptocurrency itself. In fact, they are simply bets on the price difference, which attracts professional and not-so-professional traders.
And smart traders track (https://www.lookintobitcoin.com/charts/btc-open-interest/) this parameter to understand the market's real funding flows, determine the general mood and predict periods of high volatility 🤯
Even a quick glance at the chart above is enough to see the relationship between peaks in open interest and BTC price corrections. By studying this and other indicators in more detail, you can find other patterns and use them in your trading strategy.
Save so you don't forget 😉
