#VietnamCryptoPolicy
Geopolitical tensions are shaking the crypto market again. Israel's airstrike on Iran a while ago triggered a sharp correction in Bitcoin prices. In a short time, BTC's price plunged to around US$103,000, before finally recovering to US$105,000.
The rapid and extreme price movements of Bitcoin have led many traders and investors to wonder: is this just a temporary retracement, or is it the beginning of a deeper correction?
Binance Open Interest Correlation as a Key Signal
One intriguing indicator comes from Binance. Joao Wedson, an on-chain analyst and CEO of Alphractal, revealed in his analysis on Saturday (14/06) that the correlation between Open Interest (OI) on Binance and Bitcoin prices is currently sending signals that warrant caution.
According to Wedson, this correlation is now approaching a very critical level and could be a sign that the crypto market and Bitcoin are preparing to enter a phase of high volatility.
"When the correlation drops significantly (≤ 0.1), it often indicates opposing behavior between price and Open Interest (OI). Historically, this condition often precedes a significant spike in Bitcoin price volatility," he explained.
Geopolitical tensions are shaking the crypto market again. Israel's airstrike on Iran a while ago triggered a sharp correction in Bitcoin prices. In a short time, BTC's price plunged to around US$103,000, before finally recovering to US$105,000.
The rapid and extreme price movements of Bitcoin have led many traders and investors to wonder: is this just a temporary retracement, or is it the beginning of a deeper correction?
Binance Open Interest Correlation as a Key Signal
One intriguing indicator comes from Binance. Joao Wedson, an on-chain analyst and CEO of Alphractal, revealed in his analysis on Saturday (14/06) that the correlation between Open Interest (OI) on Binance and Bitcoin prices is currently sending signals that warrant caution.
According to Wedson, this correlation is now approaching a very critical level and could be a sign that the crypto market and Bitcoin are preparing to enter a phase of high volatility.
"When the correlation drops significantly (≤ 0.1), it often indicates opposing behavior between price and Open Interest (OI). Historically, this condition often precedes a significant spike in Bitcoin price volatility," he explained.