Bitcoin (BTC) worth $2 billion in 24 hours: Open interest surges

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Bitcoin Market Update: Open Interest (OI) surges, hinting at increased volatility and potential upside

Bitcoin’s market activity has attracted a lot of attention recently, especially the significant growth in open interest (OI). This phenomenon deserves attention because it not only reflects the market’s increased interest in Bitcoin, but may also hint at future changes in volatility and market trends.

The meaning of the increase in open interest (OI):

OI surge:

Bitcoin’s open interest has increased by approximately $2 billion in the past day, a growth that reflects heightened trading activity in the futures and options markets. An increase in OI usually means that market participants have higher expectations for the future trend of Bitcoin and are prepared to conduct more active transactions based on these expectations. This also shows that investors are more concerned about Bitcoin’s possible volatility, especially as the price approaches $102,500.

Market Sentiment:

Despite the significant increase in OI, financing rates remain low, indicating that market sentiment is in balance. Low financing rates usually mean that bulls and bears do not completely dominate the market, and investors are in a wait-and-see mode and may not enter the market in a large way until Bitcoin clearly forms a trend. Even if OI increases, the balance of financing rates indicates that the market is not making extreme bets on short-term trends.

Price performance:

Bitcoin’s price has seen a strong recent rise, which has been accompanied by strong trading volumes, which supports the bullish momentum. The increase in OI complements the increase in price and may provide the impetus for the continued rise.

Bitcoin’s key technical levels:

Support and resistance:

Immediate support: $97,000, if the price falls below this level, it may encounter further retracement.

Resistance: $105,000, above which further gains may be possible, targeting $110,000.

Price pullback:

If Bitcoin fails to hold support, the price may fall back to the 50-day EMA ($87,000). This level will become a key support area, and a fall below this area may create significant downward pressure.

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