$ICNT ｜1-hour open interest +5.19%｜Price +4.96%
Before looking at capital flows, first understand open interest.
An increase in open interest doesn’t mean money is flowing in: it only means that the number of positions held in contracts has grown. It doesn’t tell you who the money belongs to or whether the positions are bullish or bearish.
It’s best to look at open interest alongside price and funding rates. On its own, changes in open interest make it difficult to determine market direction.
The same data can mean very different things in different market conditions, so don’t blindly apply rules of thumb.
#ICNT
Before looking at capital flows, first understand open interest.
An increase in open interest doesn’t mean money is flowing in: it only means that the number of positions held in contracts has grown. It doesn’t tell you who the money belongs to or whether the positions are bullish or bearish.
It’s best to look at open interest alongside price and funding rates. On its own, changes in open interest make it difficult to determine market direction.
The same data can mean very different things in different market conditions, so don’t blindly apply rules of thumb.
#ICNT