BTC futures open interest just fell to 652K BTC, down from an 800K peak earlier this year — and that's happening despite a 40% rally in Q3. Normally a rally that size pulls fresh leverage in. This one didn't.
Funding flipped negative too, averaging -0.3% across major exchanges. That means the shorts left in the market are paying the longs just to keep their bearish bets open. But don't read that as a crowded short squeeze setup either — OI shrinking at the same time means capital is leaving leverage entirely, on both sides, not rotating from one side to the other.
Worth remembering next time an OI chart gets read as "conviction" in either direction: sometimes it's just traders stepping back.
Anyone else tracking OI-vs-price divergence as a signal, or is funding alone doing the job for you these days?
$BTC $TBOT #TokenBot #Bitcoin #algotrading #TradingSignals
tokenbot.com
Funding flipped negative too, averaging -0.3% across major exchanges. That means the shorts left in the market are paying the longs just to keep their bearish bets open. But don't read that as a crowded short squeeze setup either — OI shrinking at the same time means capital is leaving leverage entirely, on both sides, not rotating from one side to the other.
Worth remembering next time an OI chart gets read as "conviction" in either direction: sometimes it's just traders stepping back.
Anyone else tracking OI-vs-price divergence as a signal, or is funding alone doing the job for you these days?
$BTC $TBOT #TokenBot #Bitcoin #algotrading #TradingSignals
tokenbot.com
