Bitcoin’s open interest exceeds $18 billion, a historically volatile level.
Analysts predict a possible shakeout before Bitcoin’s next major price move.
Funding rates show mild bullish sentiment, but a correction could still be imminent.
Bitcoin’s open interest has exceeded $18 billion, a historically significant level often preceding market corrections. Bitcoin’s price has also retreated to a low of $60,314 today.
The rise in open interest, which tracks the number of outstanding derivative contracts, suggests growing speculative activity in the market. Recent charts by CryptoQuant show that open interest has ranged between $13.5 billion and $19.5 billion in recent months. Previous peaks in open interest have often coincided with price corrections.
Historical Correlation Between Bitcoin Crashes and High Open Interest
In July, when open interest was above $19 billion, BTC’s price neared $68,000. However, a sharp decline followed, bringing BTC’s price down to $54,000, with open interest similarly declining.
A similar pattern emerged in June when open interest hovered between $16.5 billion and $17.5 billion, while Bitcoin’s price fluctuated between…
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