Data on open interest in Bitcoin futures seems to show a possibility of crypto taking up the bullish race again.
Good news! We know that the price of Bitcoin (BTC) didn’t reach the historical maximum we were all waiting for, however, all is not lost. The open interest in Bitcoin’s futures gives us hope.
Bitcoin is correcting, here are the key support levels
Bitcoin could still reach USD 20,000
According to Skew’s data, open interest in aggregate futures contracts reached USD 7.4 billion yesterday. Interestingly, over the past 6 months, open interest has increased by approximately 110%.
Therefore, the data reflects that there is a Bitcoin Trend App flow of money coming into the Bitcoin futures market.
However, the question is: What does it tell us about price behavior?
As we reported from Crypt Trend, yesterday BTC saw a major correction in its price and although it has recovered, experts fear another correction in the short term.
Therefore the crypto community is desperate to hold out hope. Obviously we all want to see Bitcoin break above USD 20,000 and stay above that level.
Bitcoin sees a big correction, what’s next?
A glimmer of hope?
Basically what Skew’s data recorded is that both Bitcoin’s open interest in futures and options have reached new highs in the last few days.
This increase in Bitcoin open interest represents an increase in liquidity in the cryptomoney and can therefore be considered a positive event.
Not to mention that, just yesterday, Bitcoin recorded the highest volume of futures in Bitcoin’s history.
As such, there are crypto analysts who still believe in the upside potential of the leading crypto. One of them is Alex Kruger who, yesterday, claimed on Twitter that he was one of the bullish ones.
“The latest price drop is a noise against the larger uptrend,” Kruger said. Let’s keep in mind that all the factors that initially drove Bitcoin are still present.
Therefore, many investors see the current fall as a setback in the market that could even be healthy. However, they maintain their upward expectations for the long term.
Another metric that points to a continuing upward trend is that, according to Glassnode, the amount of Bitcoin in crypto exchanges remains at its lowest level since August 2018.