$BTW 24-hour futures open interest fell 15.02%, while price rose 7.73%—open interest down, price up.
First, a note on the metric: open interest here is measured in coin units, excluding the impact of price movements on the value of positions, so the change reflects actual position openings or closings.
With prices rising while open interest falls, the rally is likely driven more by short covering than by new long positions. How far this kind of short squeeze can go depends on whether fresh capital steps in afterward.
Which signal do you trust more?
#BTW
First, a note on the metric: open interest here is measured in coin units, excluding the impact of price movements on the value of positions, so the change reflects actual position openings or closings.
With prices rising while open interest falls, the rally is likely driven more by short covering than by new long positions. How far this kind of short squeeze can go depends on whether fresh capital steps in afterward.
Which signal do you trust more?
#BTW