openinterestup

Why Rising Open Interest Doesn't Always Mean Bullish

⚠️ ONE FUTURES INDICATOR MANY TRADERS MISUNDERSTAND!
You see $BTC rising.
Open interest is increasing.
Does that automatically mean whales are opening LONG positions?
No.

Open interest measures outstanding derivatives contracts, not whether buyers or sellers are winning.
Here's how to interpret it:
📈 Price rising + OI rising: New positions are entering during an upward move.
📉 Price falling + OI rising: New positions are entering during a downward move.
📈 Price rising + OI falling: Position closures may be contributing to the rally.
📉 Price falling + OI falling: Positions may be unwinding.
Combine OI with volume, funding, market structure, and taker activity.
One indicator should never decide your trade.
Which indicator do you trust most?

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