{"id":13966,"date":"2023-11-07T13:54:12","date_gmt":"2023-11-07T13:54:12","guid":{"rendered":"https:\/\/www.cryptoheretostay.com\/?p=13966"},"modified":"2023-11-07T13:54:13","modified_gmt":"2023-11-07T13:54:13","slug":"bitcoin-open-interest-passes-15b-as-analyst-warns-of-20-btc-price-dip","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=13966","title":{"rendered":"Bitcoin open interest passes $15B as analyst warns of 20% BTC price dip"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) fell toward $34,500 on Nov. 7 as analysts\u2019 attention turned to mushrooming open interest.<\/p>\n<p><em>BTC\/USD 1-hour chart. Source: TradingView<\/em><\/p>\n<h2>Open interest &#8220;surge&#8221; spooks Bitcoin pundits<\/h2>\n<p>Data from Cointelegraph Markets Pro and TradingView showed BTC price trajectory struggling to reclaim $35,000 as support.<\/p>\n<p>The largest cryptocurrency lacked clear direction into the Wall Street open, but market participants predicted that volatility would soon return.<\/p>\n<p>The reason, they said, was a sharp increase in open interest (OI) on derivatives markets.<\/p>\n<p>\u201cAlmost 10k BTC (~$350MM USD) in open interest added today. Fireworks soon,\u201d financial commentator Tedtalksmacro predicted on the day.<\/p>\n<p>As Cointelegraph reported, open interest reaching elevated levels has coincided with bouts of volatility in recent months.<\/p>\n<p>Commenting on current levels, which totaled nearly $15.5 billion at the time of writing per data from CoinGlass, James Van Straten, research and data analyst at crypto insights firm CryptoSlate, described the fluctuations as \u201cnoticeable.\u201d<\/p>\n<p>\u201cThe CME exchange, preferred by institutional investors, has achieved a new record in open interest, with 105,380 BTC contracts open, valued at $3.68 billion. Binance has edged past this figure with open interest of approximately 113,500 BTC,\u201d he noted. <\/p>\n<p>\u201cThis trend points to increasing involvement in Bitcoin futures, hinting at either a positive shift in market mood or a move towards protective strategies by investors.\u201d<em>Bitcoin futures open interest chart (screenshot). Source: CoinGlass<\/em><\/p>\n<p>The sense of uncertainty over how the OI phenomenon would polay out was shared by J. A. Maartunn, a contributor to on-chain analytics platform CryptoQuant.<\/p>\n<p lang=\"en\" dir=\"ltr\">Bitcoin &#8211; Low Timeframe<\/p>\n<p>The Open Interest on #Bitcoin futures is ramping up. Certain apes are taking significant positions, but it&#8217;s unclear to me whether they are going short or long. pic.twitter.com\/47anTWRAaA<\/p>\n<p>\u2014 Maartunn (@JA_Maartun) November 7, 2023<\/p>\n<p>In analysis the day prior, he suggested that OI was now in territory which had previously seen 20% BTC price drawdowns.<\/p>\n<p>\u201cHistorically, whenever this metric surpassed $12.2 billion, it resulted in a minimum 20% decline in bitcoin price,\u201d he wrote on X, saying that OI deserved \u201csignificant attention.\u201d<\/p>\n<p><em>BTC\/USD annotated chart with OI. Source: J.A. Maartunn\/X<\/em><\/p>\n<h2>Analysis: $36,000 BTC price &#8220;off the table&#8221; this week<\/h2>\n<p>Continuing the coverage, popular trader Skew referenced the significance of current price levels on low timeframes.<\/p>\n<p><strong><em>Related:\u00a0Inordinately high \u2014 Bitcoin Ordinals send BTC transaction fees to new 5-month peak<\/em><\/strong><\/p>\n<p>Whoever is \u201cwrong\u201d on direction, he told X subscribers, would face difficulties, fuelling a potential volatile price reaction.<\/p>\n<p lang=\"en\" dir=\"ltr\">$BTC <br \/>Looking like a short covering bounce here <\/p>\n<p>Some OI coming off the lows too here  https:\/\/t.co\/R7fglUGthX pic.twitter.com\/S6d0QuhCTi<\/p>\n<p>\u2014 Skew \u0394 (@52kskew) November 7, 2023<\/p>\n<p>Looking ahead, monitoring resource Material Indicators concluded that $36,000 would remain the ceiling for the time being.<\/p>\n<p>\u201cCalling a local top at $36k doesn&#8217;t mean &gt;$36k is off the table this year, but the metrics I&#8217;m looking at indicate that at the very least, it&#8217;s off the table for this week,\u201d part of X analysis on Nov. 6 read.<\/p>\n<p>\u201cThat call also doesn&#8217;t mean price will free fall back to the prior $25k-$28.5k range, but if a bull breakout isn&#8217;t validated this month, that range low is critical.\u201d<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/bitcoin-open-interest-15b-analyst-warns-20-btc-price-dip\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) fell toward $34,500 on Nov. 7 as analysts\u2019 attention turned to mushrooming open interest. BTC\/USD 1-hour chart. Source: TradingView Open interest &#8220;surge&#8221; spooks Bitcoin pundits Data from Cointelegraph Markets Pro and TradingView showed BTC price trajectory struggling to reclaim $35,000 as support. The largest cryptocurrency lacked clear direction into the Wall Street open, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":13967,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-13966","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13966"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13966\/revisions"}],"predecessor-version":[{"id":13968,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/13966\/revisions\/13968"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/13967"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=13966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=13966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}