$Q 24-hour contract open interest: -41.81%; price: +12.41%—open interest is falling while price is rising.
First, a note on the methodology: open interest here is measured in coins, excluding the effects of price fluctuations on the value of the positions. So the change reflects actual opening or closing of positions.
With prices rising as open interest falls, the move looks more like a rally driven by short covering than one driven by new long positions. How far a short squeeze can go depends on whether fresh capital steps in next.
Is this a signal or a trap?
#Q
First, a note on the methodology: open interest here is measured in coins, excluding the effects of price fluctuations on the value of the positions. So the change reflects actual opening or closing of positions.
With prices rising as open interest falls, the move looks more like a rally driven by short covering than one driven by new long positions. How far a short squeeze can go depends on whether fresh capital steps in next.
Is this a signal or a trap?
#Q