🐋 $GTC 1 Hourly contract open interest rose 12.56%; the price increased 3.9% over the same period.
Open interest is the most direct way to see whether leveraged funds are entering the market, but it’s important to interpret this figure correctly.
Open interest value equals the number of contracts multiplied by the price, so it rises when the price goes up. Looking at the number of coins instead shows whether new positions have actually been opened.
A sharp drop in open interest often occurs after sudden price moves, indicating that some leveraged positions have been liquidated. Short-term sentiment may also cool off.
Rare readings often signal more volatile price swings. At times like these, it’s wiser to reduce your position size rather than make a large bet.
#GTC
Open interest is the most direct way to see whether leveraged funds are entering the market, but it’s important to interpret this figure correctly.
Open interest value equals the number of contracts multiplied by the price, so it rises when the price goes up. Looking at the number of coins instead shows whether new positions have actually been opened.
A sharp drop in open interest often occurs after sudden price moves, indicating that some leveraged positions have been liquidated. Short-term sentiment may also cool off.
Rare readings often signal more volatile price swings. At times like these, it’s wiser to reduce your position size rather than make a large bet.
#GTC