Open interest (OI) in Bitcoin has skyrocketed, surpassing $35 billion.
Additional Middle East escalation may send prices down to as low as 55,000.
Some market analysts are worried that the market is becoming frothy due to the recent increase in open futures contracts for Bitcoin. Open interest (OI) in Bitcoin has skyrocketed, surpassing $35 billion, a mark that has traditionally been associated with local price peaks.
One important indicator that investors use to gauge market mood and predict future price fluctuations is Bitcoin OI. It is the total amount of Bitcoin futures contracts that have not yet been settled or expire.
Rising Geopolitical Tensions
According to CoinGlass statistics, the Bitcoin OI hit $35.52 billion on September 27th. The highest since June 7th, when it hit $37.69 billion. In the 30 days after that, Bitcoin’s price fell from $70,759—close to its all-time high—to $58,239, a decline of about 18%.
That might lead to the market overheating, according to the experts. The open interest in Bitcoin has decreased by 9.1% to $32.32 billion since September 27th. While the price of BTC has dipped near $60,000 due to rising Middle Eastern tensions. Bitfinex experts see the drop as being within a range that will not halt the positive trend.
Their opinion was that OI might be reset with a small 5-10% drop that wouldn’t halt the general advance. According to some analysts, the Middle East tensions have only just begun to escalate, and the worst is yet to come.
Trading company QCP Capital recently informed its Telegram channel users that cryptocurrency took a worse fall compared to oil and stocks. They mentioned that the asset seems to have discovered a level of support near 60,000. But the report warned that additional escalation may send prices down to as low as 55,000.
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