📎 Data snapshot: $BERA ｜1-hour open interest +16.55%｜Price -1.89%
· Definition: Open interest increases when both buyers and sellers open new positions, and decreases when both sides close positions. If one side opens a position while the other closes one, open interest stays unchanged.
· Common interpretation: A sharp drop in open interest often occurs after a sudden rise or fall in price. This suggests some leverage has been flushed out, and sentiment may then cool off.
Don’t change your original plan based on a single indicator, and especially don’t gamble borrowed money on a prediction.
Risk management comes first in volatile markets.
· Definition: Open interest increases when both buyers and sellers open new positions, and decreases when both sides close positions. If one side opens a position while the other closes one, open interest stays unchanged.
· Common interpretation: A sharp drop in open interest often occurs after a sudden rise or fall in price. This suggests some leverage has been flushed out, and sentiment may then cool off.
Don’t change your original plan based on a single indicator, and especially don’t gamble borrowed money on a prediction.
Risk management comes first in volatile markets.