Divergences between open interest and price generally fall into three categories. In this case, $GTC has rising open interest and falling price (24-hour open interest +28.34%, price -14.48%):
· Open interest up, price flat: Long and short positions are both growing; things are brewing, and volatility may increase later.
▶ Open interest up, price down: New shorts may be moving in. If short positions get too crowded, there could also be a short squeeze.
· Open interest down, price up: The rise is likely driven by short covering; whether it has staying power depends on whether new capital joins in.
Open interest is currently worth about $9.64 million. Which direction are you more bullish on?
#GTC
· Open interest up, price flat: Long and short positions are both growing; things are brewing, and volatility may increase later.
▶ Open interest up, price down: New shorts may be moving in. If short positions get too crowded, there could also be a short squeeze.
· Open interest down, price up: The rise is likely driven by short covering; whether it has staying power depends on whether new capital joins in.
Open interest is currently worth about $9.64 million. Which direction are you more bullish on?
#GTC