#VietnamCryptoPolicy
Geopolitical tensions are once again shaking the crypto market. Israel's airstrike on Iran some time ago triggered a sharp correction in Bitcoin's price. In a short period, the price of BTC briefly plummeted to around US$103,000, before eventually recovering to US$105,000.
The rapid and extreme price movement of Bitcoin has left many traders and investors wondering: is this just a temporary retracement, or is it the beginning of a deeper correction?
Binance Open Interest Correlation Becomes a Key Signal
One indicator attracting attention comes from Binance. Joao Wedson, an on-chain analyst and CEO of Alphractal, revealed in his analysis on Saturday (14/06) that the correlation between Binance's Open Interest (OI) and Bitcoin's price is currently sending signals that should be taken seriously.
According to Wedson, this correlation is now approaching a very critical level and could indicate that the crypto market and Bitcoin are preparing to enter a phase of high volatility.
“When the correlation drops significantly (≤ 0.1), it often indicates opposing behavior between price and Open Interest (OI). Historically, this condition has often preceded large volatility spikes in Bitcoin's price,” he explained.
Geopolitical tensions are once again shaking the crypto market. Israel's airstrike on Iran some time ago triggered a sharp correction in Bitcoin's price. In a short period, the price of BTC briefly plummeted to around US$103,000, before eventually recovering to US$105,000.
The rapid and extreme price movement of Bitcoin has left many traders and investors wondering: is this just a temporary retracement, or is it the beginning of a deeper correction?
Binance Open Interest Correlation Becomes a Key Signal
One indicator attracting attention comes from Binance. Joao Wedson, an on-chain analyst and CEO of Alphractal, revealed in his analysis on Saturday (14/06) that the correlation between Binance's Open Interest (OI) and Bitcoin's price is currently sending signals that should be taken seriously.
According to Wedson, this correlation is now approaching a very critical level and could indicate that the crypto market and Bitcoin are preparing to enter a phase of high volatility.
“When the correlation drops significantly (≤ 0.1), it often indicates opposing behavior between price and Open Interest (OI). Historically, this condition has often preceded large volatility spikes in Bitcoin's price,” he explained.