$JCT 24-hour contract open interest: -13.13%, price: +9.22%—open interest fell while the price rose.
First, a note on the metric: open interest here is measured in coins, excluding the effect of price movements on its value. So increases and decreases reflect actual opening or closing of positions.
With the price rising while open interest falls, it looks more like the rally is driven mainly by shorts closing and buying back, rather than new longs entering. How far this kind of short squeeze can go depends on whether fresh capital steps in next.
If the market reverses from here, how would you respond?
First, a note on the metric: open interest here is measured in coins, excluding the effect of price movements on its value. So increases and decreases reflect actual opening or closing of positions.
With the price rising while open interest falls, it looks more like the rally is driven mainly by shorts closing and buying back, rather than new longs entering. How far this kind of short squeeze can go depends on whether fresh capital steps in next.
If the market reverses from here, how would you respond?