1. Hotspot Interpretation
1. About 20,000 Bitcoins have flowed back into the exchange in the past two weeks.
As Bitcoin fell below the $28,000 mark, the market selling pressure increased. After the recent Bitcoin long liquidation event, exchanges once again witnessed an increase in Bitcoin deposits. According to Glassnode data, about 20,000 Bitcoins have returned to exchanges in the past two weeks. Every major market trend will have a transfer record of on-chain data. After all, the market is like a battlefield. Before the troops arrive, the food and grass must go first.
2. The median GAS fee for the second cake just reached 47.077GWEI in the past hour (7-day moving average), a 10-month high.
The activeness of on-chain information indicates that many people are trading on the chain. This is probably related to the success of several new IPO projects, and a large number of people are trading currencies on the chain.
3. The new issuance of bnb will continue to provide price support for bnb.
Although bnb has certain positive support, this price is not suitable for long-term purchase, because there are people who are constantly making risk-free arbitrage, buying spot and selling contracts. Therefore, if fans hold it short-term (focus on short-term), they can reduce their positions at the price of 335.
There is no other important news.
The impact of contract open interest on market conditions
Let’s talk about something useful today: the impact of contract open interest on the market, which is an important factor in determining the trend of long-term market conditions.
Let's first talk about what contract open interest is. It is simply the total amount of funds that have not been closed by both long and short parties in the market. Because the long and short positions in the market must be equal, in the matching market, if one person opens a 10U short order, there must be a 10U long order corresponding to it.
The more open interest a contract has, the more people are participating in the market, reflecting two phenomena: 1. The market sentiment of going long is high, and more funds are involved, because in a falling situation, people's willingness to participate will decrease. 2. When the open interest of a contract reaches a staged high, a "harvest" phenomenon will occur. This is likely to cause a sharp drop, bringing down the open interest.
Let’s get straight to the point:
This is the trend of holdings and the K-line chart from 20 years to now. Basically, when the holdings reach a peak, there will be a sharp drop.
The current plunge is because the open interest has reached its highest point since August last year, the bullish sentiment is very high, and the market is facing a correction. Well, the above is the application of open interest, and 08 will also look at this data frequently.
