Technical note｜$BMT ｜15-minute position +5.4%｜Price +5.38%
First, the definition: Every open contract has both a long and a short position behind it, so open interest itself is neither bullish nor bearish. The number of long and short positions in the market is always equal.
Next, how to read it: Open interest varies greatly across different coins. It’s not unusual for a small-cap coin’s open interest to change by tens of percent in a short time, while a move of the same magnitude is much rarer for a major coin.
Extreme readings often come with greater volatility. At times like these, it’s better to reduce your position rather than add to it.
First, the definition: Every open contract has both a long and a short position behind it, so open interest itself is neither bullish nor bearish. The number of long and short positions in the market is always equal.
Next, how to read it: Open interest varies greatly across different coins. It’s not unusual for a small-cap coin’s open interest to change by tens of percent in a short time, while a move of the same magnitude is much rarer for a major coin.
Extreme readings often come with greater volatility. At times like these, it’s better to reduce your position rather than add to it.