$BTC 24-hour futures open interest rose 10.04%, while price fell 2.91%—open interest up, price down.
First, a note on the methodology: open interest here is measured in coins, excluding the effect of price movements on its value. So the change reflects actual opening or closing of positions.
With prices falling as new positions increase, it looks more like fresh shorts are actively pushing prices down—though some longs may also be buying as the price falls. In the short term, watch out for continued selling pressure from shorts; but if short positions become too crowded, a rebound could come quickly.
How would you trade?
First, a note on the methodology: open interest here is measured in coins, excluding the effect of price movements on its value. So the change reflects actual opening or closing of positions.
With prices falling as new positions increase, it looks more like fresh shorts are actively pushing prices down—though some longs may also be buying as the price falls. In the short term, watch out for continued selling pressure from shorts; but if short positions become too crowded, a rebound could come quickly.
How would you trade?