🚀 BTC contract holdings on mainstream exchanges are close to all-time highs, indicating that Bitcoin prices are about to break through previous highs?
After months of slump, the world's most valuable currency has begun to heat up, and market sentiment has improved accordingly. The latest data shows that Bitcoin open interest on all major derivatives exchanges will be close to an all-time high of $39 billion!
After a period of slump, the Bitcoin market has begun to pick up, and traders' confidence has also increased. According to the latest data from Coinglass, the current Bitcoin open interest exceeds $38.6 billion, showing a continuous growth trend compared with the open interest of the previous two days.
The last time this level was reached was on March 29, 2024, when the open interest just rose to more than $39 billion.
Open interest is a key indicator of investor sentiment, reflecting all unsettled leveraged trading positions in the market. Although this indicator does not show the direction of price movements, it also reveals traders' interest and participation in the market.
From this, we can understand that the increase or decrease in the amount of open interest can tell us whether traders are actively participating in the current market or staying on the sidelines.
When the cryptocurrency market surged in early Q4 2023, open interest increased to an all-time high of over $39 billion. But in Q2 2024, as Bitcoin prices fell, open interest also decreased.
Going back to August 6 this year, when BTC fell below $50,000 the day before, Bitcoin open interest also fell below $27 billion that day. Later, as Bitcoin prices gradually stabilized, open interest began to steadily recover.
Currently, traders generally believe that Bitcoin prices are expected to continue the upward trend in September and may rebound to the highs of March.
But it is worth noting that Coinglass's 24-hour long-short ratio data shows that long trading volume is less than short trading volume. Currently, 50.39% of BTC trading volume is short, while 49.61% is long. The data shows that most contract traders are still bearish.
💬 Do you think the price of Bitcoin can take advantage of this opportunity to break through the historical high again? In the current market environment, what trading strategy will you adopt?
